You’ve found the perfect tenant, performed a tenant screening check, signed all the paperwork and removed your unit from the rental market…then you see his three “babies”, a trio of growling pit bulls perched on your patio. Pets of any type are a tricky proposition, but some dogs can actually be dangerous to you, your property and your other tenants. Learn more about what you can and can’t do to protect yourself from tenants with dangerous pets.

Allowing some pets, but not others: As a landlord, you can choose to rent to people with pets, or bypass them entirely. Most pets are harmless and enhance the renter’s enjoyment of your home, but some breeds or particular dogs can be troublesome or impact your other tenants. Choosing to rent to owners of specific breeds is your choice, and restricting some breeds doesn’t make you an animal hater or an awful person; in some cases, it just makes you a savvy landlord.

Consider restricting certain dangerous dog breeds in the following situations:

Your city has a breed ban in place: If your city or town is one that has chosen to ban select breeds, you have to comply with the law. Pit Bulls, Staffordshire Terriers, German Shepherds and Dobermans top the list of banned breeds, but there are about a dozen that are banned by communities that use Breed Specific Legislation (BSL). If you are renting your home to a pet owner, you should be familiar with your area’s breed specific laws; a quick call to your county animal control office should give you an idea of what to expect for your area.

Your insurance company charges you more for some breeds: Some homeowner’s policies refuse to cover specific breeds entirely, while others charge a hefty premium. If your tenant’s dangerous dogs or other pets will end up boosting your insurance costs for years to come, it may be best to avoid the situation entirely. Your insurer can let you know what breeds it considers dangerous and will charge extra to cover.

You’re worried about liability: While there are no actual laws that property owners are always liable when a tenant’s dog injures someone, there are plenty of cases that have ended up with liable landlords. From having knowledge of a particular dog’s aggressive tendencies to failing to repair gates or fences, landlords have been found liable for thousands in damages when it comes to dog attacks.

Your own peace of mind: You may be a dog lover and even have dangerous breed pets of your own, but you never truly know how a dog will react to a new home or situation. You also have no way of knowing how your tenant has raised his pet, or even where the pet came from. Some rescues have come from terribly tragic circumstances and may be more prone to act out of fear or aggression than others. If renting to a tenant with a dangerous breed will give you nightmares, cause you extra stress or simply make you afraid to visit your property, don’t do it. There are plenty of renters with small or benign pets that can rent your property without causing you undue stress.

If you don’t restrict breeds and you do rent to a tenant with so-called dangerous dogs, there are some ways to protect yourself and some potential issues to expect. If you have a tenant in place who owns a large or aggressive dogs, they may scare away other potential renters. If the dog in question is aggressive towards other animals, you may run into noise ordinance issues if the dog in question barks whenever another pet walks by the home.

Your lease is your best protection against dog-related issues. Screen your tenant thoroughly and meet the dog in question. Make sure that you write in the specific breed and the specific dog you are allowing, and spell out the consequences of poor pet management. If a neighbor or other tenant has a complaint, be sure to follow up; failing to do so could cause you to be held liable in court if a problem occurs. Taking extra precautions during the application and leasing process can protect you, your property and your other tenants in the long run.

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!

Is it worth a landlord’s time to hold an Open House for a rental property? Does it make sense to have an open house for rentals?

Open houses have a long history in helping sell houses. Yet many homeowners and rental agents have turned away from the practice, for several reasons:

1) Security: We’re all more safety-conscious these days. The simple fact is that an Open House provides would-be thieves free access to steal small items around a property and study the grounds for future thefts.

2) Effort: It takes a lot of work to plan and prepare a property for an Open House. Of course, you may have taken many of the same cleaning, repair and repainting steps for a new tenant. But with an Open House you’ll have to clean again after the event, and may have to make minor repairs, too.

3) Results: There’s no real evidence that Open Houses drive rentals. In fact, one national survey indicates that renters use online tools and word of mouth far more than unit visits to find living quarters.

All that considered, there are still some solid marketing benefits to having an Open House for rentals. For example:

You can generate some “buzz” around the property

Having an Open House can help you create some interest among renters. You can advertise it on apartment rental sites, in local newspapers, with lawn signs (make sure your community allows them!) or with flyers.

As a bonus, a well-attended Open House can make a unit seem more desirable to renters. That can generate some competition among interested renters who feel they need to act fast to secure the property.

It can you connect with potential future tenants

Steal a page from the real estate market here. Agents know that Open Houses rarely sell homes. They do allow the agents to make contacts with dozens of potential buyers who may become clients. If you manage more than one property, you can take the same approach with your Open House. Consider it a chance to network with potential tenants who may be better suited to one of your other units.

Remember if you’re having an open house for rentals to have a sign in sheet so you can collect contact information from prospective future tenants.

You can get valuable information on how people perceive your property

Having an Open House allows you to show off the properties features and see if you’ve correctly identified the features that matter to renters. As an added benefit, the questions you’ll get about the property will likely be asked by more serious potential renters on private tours. Hearing these questions at an Open House gives you a chance to rehearse how you’ll answer the questions

It can help you sharpen your market focus

Do you have properties that are difficult to let? Hosting an Open House for rentals gives you a chance to get feedback from many potential tenants. You can use their comments about the property to identify items that need repair, or perhaps change your focus on who might want to rent there (ie., perhaps the unit is too small for families, so you may want to focus on students or young singles.)

It can serve as part of the tenant screening process

An Open House gives you a chance to mingle and talk with renters. Many landlords trust their guts as much as an application or credit score when screening tenants. If you take this approach, you can consider the Open House a chance to get more information to help you form an opinion.

For more information on tenant screening for landlords, be sure to check out the American Apartment Owners Association tenant screening page.

An Open House for rentals is far from a sure thing. You may go to a lot of work and get sparse attendance. If you decide to have one, however, you may find it’s helped you develop a better understanding of your property’s desirable features and where it sits in your local rental market.

– See more at: http://www.american-apartment-owners-association.org/property-management/marketing-vacant-units/open-house-for-rentals-does-it-make-sense/#sthash.KhaLlPls.dpuf

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!

You’ve done all the right things — screened your tenant well, created and signed a comprehensive contract and met all your responsibilities as a landlord, but what happens when a previously good tenant goes rogue? Here are some warning signs that your tenant may have trouble ahead and what you can do to protect yourself or minimize your risk.

5 Signs a Good Tenant is Going Bad:

1. A turbulent romantic life: While your tenant has every right to privacy, a string of overnight guests can spell trouble down the road. If your tenant is sharing the keys to the property, another adult will have access to your building — an adult you have not screened or even met. People meet, fall in love and decide to live together every day, and that’s a great thing — but it can spell trouble for your property. Most tenants won’t realize that they have an obligation to let you know that they have moved another person onto your property. If you have a good lease, there is likely a requirement that you be informed of all new tenants. Check your lease and proceed from there to ward off any potential problems.

2. A new arrival of the four footed variety: Your tenant’s tired old Basset Hound passed away, and after a period of grieving, a new puppy has been chosen. The problem here lies with breed and activity level. If you approved an older, sedate, non-threatening breed, you have the right to know that a new pet has been purchased, and what to expect from that new animal. Your lease should specify the pet that was allowed, and if a new pet has been acquired, it will need to meet your guidelines. Admire the puppy, but check your lease and make sure you ask some questions about his parentage and where he’ll be living during the day.

3. Your tenant is moving on: Rental properties are transient residences, but even the best tenant can fall short of funds or lose track of time when they are moving from one place to another. While most move-outs go smoothly, some tenants can adopt a “nothing to lose” attitude as the big day approaches. If you’ve got a tenant that is planning to move, keep a closer eye on the situation than you normally would, just to be sure you are paid in full and that the property is left in acceptable condition.

4. Trouble in paradise: Having a new boyfriend or girlfriend move in can be a red flag — but so can a spouse or significant other who is on the way out. Shouting matches, frequent reports of trouble by other neighbors and other displays of a relationship in trouble should be a red flag for you as well. You face two potential problems when a relationship is on the rocks — damage to your property and a loss of tenant income. If the breadwinner moves out — or even if the person paying half of the rent moves on, the remaining tenant will struggle to pay the bills. Make sure you know who is living in the property and be aware of any unexpected move outs or departures.

5. Financial crisis sets in: If your tenant is facing some financial stress that is not impacting his ability to pay the rent, you should still keep a closer eye on the situation. People who are repeatedly having issues paying the utilities or experiencing cutoffs are living very close to the edge, and a single misstep could result in the rent not being paid. If you notice that you often have utility workers in and out of a unit on a monthly basis, they may be turning off and restoring services and signifying that a problem lies ahead.

While you may not be able to ward off every problem, as much advanced notice as possible will help you protect your property and your investment. If you do notice one or more of these warning signs, simply being more aware of the property and making sure that the lease and property rules are being followed may ward off a problem or give you peace of mind.

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!

Let’s face it. Customer service is probably among the top five reasons that consumers are loyal to any business. In the rental industry, customer service starts before the tenant application is even started.

When prospects take the time to contact a rental property for more information, they’re looking for confirmation that property management values their time and patronage. Initially, prospects may request information about lease terms, availability or amenities. Often, prospects reach out to several properties at the same time. If your team doesn’t respond quickly, you may not get a second chance to build a relationship based on the initial inquiry.

Below are three tips to help increase property conversion rates.

#1 Understand Expectations

Although there isn’t a set time for a company to respond to an inquiry, customers expect a company to respond within a “reasonable” amount of time. Establishing a standard response time – and consistently applying your standard – goes a long way toward differentiating your property from the competition.

Poor response rates are a tale-tale sign that management isn’t setting a good example. If your team isn’t serious about responding to customers, it’s likely management has not conveyed the importance of connecting with customers in a timely manner and treating each customer with the utmost respect.

At the very least, consumers should receive an immediate confirmation that an inquiry has been received. The message should reflect a desire to provide timely, relevant answers as quickly as possible and should include an approximate time and method of follow-up. For example, the message may include office hours, some general information about the property and the name of a leasing agent who will follow up with more specific answers to the prospect’s questions.

#2 Recognize Social Significance

Businesses cannot afford to ignore the impact that social media plays on consumer expectations. While 24 hours was a reasonable response time a few years ago, the instant gratification nature of social networking sites has dramatically altered consumer expectations.

Ignite Social Media reported that “social customer service” has the potential to revolutionize the way that companies build brand loyalty. Ignite points out that it is important to respond to both positive and negative comments in order to build brand loyalty – resolving problems quickly and encouraging happy customers to keep sharing positive reviews.

Air France KLM sets a high benchmark for businesses across multiple industries to strive for. Based on Expion research, KLM responds to 92% of Facebook comments and has an average first response time to page inquiries of less than 30 minutes.

The take away for rental managers is to project a professional image 24/7 by actively engaging with customers on Twitter, Facebook and other social sites, as well as the company website.

#3 Engage Frontline Employees

Setting clear expectations for employees is critical. While small properties may not require a dedicated PR team to keep tenants and prospects happy, these organizations should not take a casual approach to customer service.

Increasing conversion rates is easier if your employees know what is expected and how to exceed those expectations. If your employees cannot answer the following questions, it’s time to revamp your training policy.

• Who is responsible for responding to website and social inquiries?
• How long should it take to respond to online inquiries?
• What training resources are available to employees?
• What is the company policy regarding problem resolution?
• Is there a product/service policy manual and where is it located?

Property managers who know how to respond quickly, effectively and professionally to online inquiries and comments capture the competitive edge in the rental market. There’s a measurable connection between highly trained employees who respond quickly to inquiries and provide solutions to problems with accessible resources and positive conversion rates.

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.

Smoking is one of the largest health issues facing America today, and landlords have an increasing number of concerns and questions about allowing people to smoke in their buildings. Whether you rent out half a duplex or own multiple apartment buildings in the city, smoking is an issue that you’re probably facing or will face in the near future. An increasing number of tenants are requesting smoke-free living spaces, trying to avoid the consequences of second hand smoke on their health and that of their family members. Choosing to make your buildings smoke-free can protect both the health of your tenants and the bottom line in your business.

Advantages

One of the largest advantages to a landlord is that going smoke-free in his buildings will save him money from the very start. Some of the ways in which you’ll increase your bottom line are:

• Reducing costs and turnover time. There is a percentage of tenants who will eventually move out of a building if the problem of secondhand smoke starts to affect their lives. Creating a building free of secondhand smoke will save you costs of renting your units more frequently, plus the possible loss of income from not being able to fill units as quickly as you’d like.
• Reducing maintenance costs. From the tiny to the all-encompassing, problems with smokers will cost you maintenance money whenever they move out. Cigarette burns require repair or replacement in carpeting. Smoky smells require a thorough dry cleaning on drapes, as well as a complete wash down of walls and ceilings. In the worst cases, some of your furnishings may have to be replaced completely.
• Reduced insurance premiums. Non-smoking buildings are seen as inherently safer than those with smokers, at least in the eyes of most insurance companies. There is a smaller chance of fire as well as fire, so your property insurance premiums may lower significantly when you turn your buildings smoke-free.

Support

Smoke-free buildings are a strong future trend for apartments, condos, and other rental housing. A number of organizations have given their support to this movement, offering the strength of the federal government as well as the expertise of industry leaders. Dave Watkins, the Chairman of the Board of the National Apartment Association, has stated, “Smoke-free apartment communities not only promote a healthy resident population, but also a healthy bottom line for owners and investors.”

In order to support business owners in their effort to go smoke-free in their housing units, the group Americans for Nonsmokers’ Rights has published multiple pamphlets, booklets, and white papers, detailing your rights and advantages, as well as the benefits of a nonsmoking building lifestyle.

The federal government has even weighed in on the subject. In 2009, the office of Housing and Urban Development (HUD) issued a memorandum which “strongly encourages Public Housing Authorities to implement non-smoking policies in some or all of their public housing units.” They went further in 2010, encouraging all owners of Section 8 housing to implement a smoke-free policy in their units. These documents added weight to the rights of business owners to declare their buildings smoke-free and act as a guideline for state and local public health officials on the subject.

In short, turning your rental property into smoke-free buildings is a win-win situation. You’ve got everything to gain because:

• It’s legal
• You’ll rent your units faster
• You’ll raise your bottom line
• Your tenants will be happier

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!

Remember a few years ago when everyone was saying, “There’s an app for that” so often you wondered if technology was going to replace humans before the end of the decade? Love it or hate it, technology is firmly rooted in every industry and many companies couldn’t get through the work day without it.

The good news is that technology can boost performance and increase property revenue if managers invest time to find the proper tools, train all staff members and encourage everyone to use the tools correctly.

Here five tech tool examples and how property managers can use them to boost performance and outcomes.

Number 1: Inventory Management

Finding an efficient system to track resident supplies and maintenance inventory is something many property managers dream about. With solutions like My Inventory Manager, an app designed for use with iPhone, iPad and iPod Touch devices, managers simplify inventory control with instant access to a full list of items in storage.

Number 2: Maintenance Dispatching

Sometimes a cloud-based system is more helpful than an app. AppFolio Property Manager maintenance applications allow property managers to streamline maintenance services. The software allows residents to request service online and lets managers log maintenance tickets, communicate with contractors and expedite services quickly.

Number 3: Competitive Comparisons

Whether you use a stand-alone-app or a module integrated in a property management software package, access to up-to-the-minute local data gives property managers a snapshot of the local rental landscape. Gaining useable information about real-time inventory and current competitor rental rates allows leasing agents to adjust rates and fill vacancies quickly.

Number 4: Deploying Mobile Devices

Tablets offer myriad opportunities to streamline operations and boost productivity. Along with accessing valuable cloud-based technology like the apps and software mentioned above, tablets give leasing agents an opportunity to take prospects on a virtual tour when they can’t leave the office.

Some properties find that iPhones and tablets are excellent collections tools, too. Instead of sending a text or posting a message on the resident portal about past due rents, an employee can visit the apartment home with a company tablet and allow residents to make a payment immediately during the initial contact.

Number 5: Scheduling Customer Engagement

The nature of multifamily property management is fluid. Along with scheduling tours and interviews, staff must be flexible enough to accommodate a significant volume of walk-in traffic. Scheduling software can help your property manage people, resources, events and even major renovation projects for your community.

Scheduling software that allows prospects to book a tour when it is convenient can save properties hours of valuable time each week spent on the telephone. Depending on the scheduling software package, property managers can adjust schedules by:

• Notifying employees an uptick in traffic is expected.
• Allowing off-duty employees the opportunity to pick up extra hours precisely when needed.
• Scheduling routine tasks to accommodate self-scheduled prospects.

Adding new technologies to your property tool box probably won’t be without at least a few challenges. You’ll want to carefully research products and companies and some technology requires a substantial financial investment.

However, deploying innovative solutions to boost performance and increase return on investment can pay off when you get everyone excited about technology that saves time, money and resources.

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.

America is often called the great melting pot of the world. However, the melting pot analogy is becoming a thing of the past – or at least evolving. Rather than expecting foreign-born immigrants to assimilate to the American culture, we celebrate diversity. It is more common to look for ways to not only coexist peacefully, but also encourage our neighbors to thrive in America without abandoning their own cultural identities.

Recognizing your town or city is culturally diverse is not enough. Property policies, the performance and behavior of the management team and a welcoming atmosphere are intrinsic to success. The goal is to fuse cultures together in a way that builds a unique – maybe even exceptional – community that your residents are proud to call home.

From California to New York, businesses and public service sectors see a rapidly changing population. For example, New York welcomes at least 100,000 new foreign-born residents every year – and more than 3.2 million people living in the state report they don’t speak English “very well”. On the west coast, social services workers providing Medicaid sponsored in-home service say that almost half (49%) of their clients do not speak English.

Our country welcomes refugees from war-torn countries like Sudan and actively pursues “the best and brightest” people from around the world to teach in public universities, conduct medical research and work in technology testing and development labs.

Identifying Your Community’s Cultural Competency

Whether you manage property in New York, Atlanta, rural Nebraska or Houma, Louisiana, your town or city most likely has a dominant demographic, but populations constantly change.  Natural disasters, industry expansions and closings, immigration and many other factors influence community profiles.

Here are a few suggestions for identifying and responding to diverse culture groups.

Identify your service group(s). Get to know your community and the surrounding area intimately. Ask current residents about cultural differences, preferences and services they would like to see added to your property.

Engage with civic leaders. Inquire about upcoming industry expansion. School administrators are another valuable resource. Often, schools notice the population shift sooner than retail and business outlets.

Establish relationships with key partners in your town – builders, service providers, clergy, bankers. External relationships help you identify potential prospects and understand your community’s race, ethnic and cultural profile.

Educate yourself. Once you identify a new or expanding demographic, research their customs and lifestyle preferences. Some cultures are uber social, others are more reserved. If you want to attract a group of residents that value frequent family gatherings, look for barriers that might interfere and solutions that encourage socializing.

Do you have adequate meeting space? Can you make arrangements with a local venue to host a once or twice a month gathering? Can you designate part of the clubhouse or patio for impromptu brunches?

Reorganize your administrative processes. Start with communication. If you already have a multicultural community, make sure your communication encourages diversity.

Hiring bilingual (or multilingual) leasing agents shows prospective residents you appreciate and value their relationships.

Brochures, newsletters, and all property communication should be easy to understand – and if possible, translated into native languages for your non-English speaking residents.

Consider the senses. What we see, hear, feel and smell contribute to our overall comfort and sense of security.  Color and décor choices send visual clues. Even the music softly playing while callers are on hold provides a subtle clue about your property values.

You can make small changes like the ones mentioned above to connect with your residents on a personal level.

What do you think? Is your property doing enough to engage diverse cultural groups?

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 renting out an apartment or rental unit you’ll want to make it look as appealing as possible to the prospective tenant. While you’ve probably considered improving the interior of the apartment, chances are you haven’t spent as much time on the outside. Unfortunately, many tenants will judge their new home by its exterior. If the outside doesn’t look nice enough, a renter might not even schedule a showing. Because of this you’ll want to put extra time and effort into making sure that your rental looks as great from the street as it does from the kitchen.

1. Paint the front door

One of the simplest, easiest ways to make your rental stand out is to paint the front door. If your door’s paint is chipped or faded, a fresh coat can make it look much nicer. Another option would be to paint the front door a bright color so that it contrasts nicely with the color of the siding.

2. Trim your shrubbery

Is your yard overgrown? Does it look more like a jungle than manicured garden? It might be time to trim back your shrubbery. While you don’t need to remove your bushes and hedges, you should make sure that they look neat and tidy. This will demonstrate to potential tenants that you take good care of the property grounds. If the outside of your property looks nice, renters will assume that the inside looks good as well.

3. Plant fresh flowers

Another simple way to get renters interested in your location over the competition is to plant fresh flowers along the walkway. Make sure that you plant flowers that have already blossomed, rather than seeds that will take time to grow. A renter wants to imagine themselves living in your home.

4. Replace your fixtures

If the brass on your front door knob is faded or the door knocker is a different color than your doorbell, it may be time to update your fixtures. Consider purchasing a new doorknob or handle, new locks, and even a new doorknocker that all match. Not only will this make everything look more uniform but it will also make your front door look fresh.

5. Update your rental address numbers

One of the simplest adjustments that you can make to your rental is to update your address numbers.  No, this doesn’t mean that you need to assign your rental a new address. This simply means that prospective tenants and their guests will want to be able to view the number on the front of your house easily. If your number is faded, broken, or falling down, you can quickly improve your home’s appearance with new numbers. If you choose to hang metal numbers, make sure that they match your front doorknob and door knocker. If you utilize wooden, painted numbers, they should match the front door or the trim of your home, but should not be the same color as your siding. Make sure that you can clearly read the numbers from the street, as potential renters won’t want to struggle to see which location they’re at.

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!

Property management is a relatively straightforward business area that provides reasonable, ongoing returns on the management of residential, commercial and industrial premises. Property managers make money through service fees, normally as a percentage of the rental price of a property. In this article we’ll explore what’s involved in property management and whether it’s a career or business move that could be right for you.

What property managers do

The main areas that property managers and property management firms are responsible for include:

Generating income from property

.   Researching market rates for renting out property and setting appropriate rental prices based on location, desirability, size, facilities, overall condition etc.
.   Adver sing property that is available for rental.
.   Keeping an inventory of property that is available for rental, together with supporting information.

Managing tenants of property

.   Screening tenants to check that they are credit-worthy, have good references, can pay their rent and will look after the property.
.   Getting contracts in place with tenants detailing the various roles, responsibilities and other aspects of renting out a property.
.   Dealing with issues raised by tenants.
.   Carrying out periodic inspections of property.

Maintaining property

.   Liaising with contractors, tradesmen and other services to repair and maintain property.
.   Keeping a schedule of required, ongoing maintenance for property.
.   Protecting and preserving the values of property in the portfolio.

Regulations, compliance and management

.   Dealing with insurance, regulatory and other legal requirements relating to rental of property.
.   Managing property on behalf of either themselves (as a holding company) or private landlords.

Types of property that can be managed

You might choose to specialize in the type of property that you manage. Some of the different areas that you can go into include:

.   Residential – Houses, apartments, condos and shared accommodation.
.   Student – Housing that specializes in student accommodation in cities with colleges and universities.
.   Vacation homes – Property rented out for people when they are on vacation, normally for one to four weeks at a time.
.   Commercial offices – Small and large spaces for other businesses and organizations
.   Factories – Industrial spaces with specialized areas for production lines.
.   Warehouses – Storage locations for businesses.
.   Other industrial premises – Specialized or general industrial space.
.   Retail – Space devoted to stores and other sales of goods and services.

Ideal skills for property management

Going into property management could be right for you if:

.   You like dealing with people – You will often have to interview and screen tenants to make sure that they are right for the property that you are offering. If you do not own the property yourself, you will also need to deal with landlords and other interested parties.
.   You can get good deals on maintenance and repairs – Repairs and maintenance will often be one of the bigger outlays that you need to make. Negotiating good deals on repair rates with suppliers will improve your profit margins.
.   You don’t mind paperwork – There’s lots of paperwork involved in property management including contracts, leases, insurance, regulations and more.
.   You provide good service and value for money – Landlords are looking for a combination of trouble-free renting and value for money. If you can minimize any issues for them and do that at a good price, your business will thrive.

Typical returns for property management

Property managers normally make money by taking a percentage of the rental price on a property. They may also charge set fees based on the first month’s rent and may also ask tenants for fees to process their applications.

.   Fees do vary depending on where you’re located. In rural and suburban areas, rates are typically between 8% – 10% of monthly rental costs, so around $80 – $100 a month per property managed (around $1,000 – $1,200 PA).
.   Some property agencies charge fixed fees of around $75 to $120 a month ($900 – $1,500 PA).
.   Larger cities often charge higher fees for property management; fees in New York can be up to 15% of rent. ($3,600 PA on a $2,00 a month apartment).

In closing

Property management can be a lucrative business, although it does require a good portfolio of managed properties to generate reasonable returns. If you can build up a good portfolio, you can easily make several thousand dollars a month and potentially quite a lot more.

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!

The completion of a move in inspection is a document with serious legal ramifications. Without a complete and executed move in inspection, management has no documentation to show the condition of the apartment at the time of move in. An executed document shows the resident accepted the condition of the apartment with whatever notated findings.

There are several methods to ensure return of the move in inspection.

• The move in inspection is completed with the resident by management immediately following the lease signing. Both parties sign off and the document is complete.
• Companies that allow a longer period of time might retain the mailbox key requiring return of the move in inspection before the mailbox key is issued to the resident.

Scheduling a follow up visit to insure completion of any additional repairs can create positive customer service. The resident should be able to anticipate a response from the management company for any items documented on the move in inspection.

Are the items reflective of wear and tear from the previous resident or are there repair items to be completed?

Including maintenance team members in the move in process for the inspection and orientation can provide a number of benefits.

• The maintenance team receives first hand feedback on the condition of the apartment home-preferably positive, but in the instances that a resident points out a repair or cleaning item that was overlooked, the experience will create an impression that will insure the item is not likely to be overlooked in the future.
• Maintenance can explain the operation of the thermostat, heating or cooling systems, and electrical features, such as outlets that are controlled by wall switches.
• Including maintenance staff for the move in inspection can eliminate the need to schedule an appointment for any repairs. Small minor repairs can be resolved instantly.

The underlying symptom is the failure to monitor a review of move ins after the lease has been signed. Missing documents, errors with lease dates and missing signatures are not identified until a legal procedure is in process.

The new move in is cited for unpaid rent, only to find that the items on the move in inspection have not been repaired, attempting to document charges for damages at the time of move out is inconclusive because the move in inspection was not returned.

Best practices install a process to audit the documents following a move in. In the maintenance call back, should be a function to contact new move ins to make sure all items were repaired, and offer the opportunity to add to the inventory if anything additional has been identified.

Recognizing the occasions that maintenance and housekeeping prepare a defect free move in, offers an opportunity to stress the importance of this document and the function of the move in inspection to the portion of the team that may not understand the impact and ramifications of this document.

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.