Need Ideas For Property Management Solutions

If you’re like me you’re always on the lookout for new property management solutions, ideas that will make your property management run more efficiently and less expensively.

In today’s property management training article I’d like to share ten property management solutions I’ve personally used, along with tips on which worked well and which not so well.

Set The Right Expectations

Property management solution #1 is to set the right expectations with your investors, your tenants and your vendors.

This also falls into the time management category. I remember a long time ago somebody once told me, “If you don’t manage your time somebody else will manage it for you.”

How true.

If you’re working with building owners, set the right expectations for your weekly or monthly reports, distribution of owner funds, and follow-up calls and emails.

With tenants, be consistent with rent due dates, when rent statements are sent out, deposit of funds, and willingness to do repairs that maybe aren’t called for in the lease. After only a few months of setting the right expectations with tenants you’ll be surprised how everything falls into place.

Develop A List Of Reliable Vendors And Suppliers

I find that by paying the vendor early and by not nickel-and-diming the vendor, that in return I get very competitive pricing and straight-forward, reliable service.

Even if you only have one good vendor that you work with, they can probably provide a wealth of referrals to people they know that work in other trades. The fact is, people know and do business with people like themselves. If you’ve got one guy or gal that’s a great supplier, they will know others to refer to you.

Send Monthly Rent Statements

This is the #1 way to improve your cash flow and to move your cash receipts up in the month.

Many times we’ve taken over the management of a property where the tenants have fallen into the habit of paying just before the late date, say the 10th or the 15th.

By sending our printed statements 10 days before the due date of the 1st of the month, we’ve had a 100% success rate in getting tenants to pay by the due date and have dramatically changed the timing of the property’s cash flow.

On-Line Billing To Tenants

Most banks and off-the-shelf accounting software offer this service. As long as you have an email address for your tenants you can easily create a statement on-line and email it to the tenant along with a link for payment.

On-Line Payment For Tenants

This goes hand-in-hand with sending statements on-line. Your on-line statement to the tenant will have a link for payment which goes directly into one of the accounts for the property. You’ll save the time and trouble of opening envelopes and going to the bank to make those daily deposits.

One word of caution: Don’t spend a lot of money to set up a system like this. Most banks will do it for a few dollars a month, but I’ve seen pricier systems on the market as well.

If you survey your tenants and ask them if they’d like the option of paying on line, 99% will say Yes.

The reality is that many will still mail to you the on-line statement the printed or deliver payment to your office. The on-line payment option is nice to offer, but don’t spend a lot of money on one because the actual usage by your tenants will be a lot lower than expected.

Wellness Checks For Tenants

We’ll pro-actively do little things for our tenants: Replace burnt out lights, ceiling tiles, and check plumbing for proper operation.

This gives us the opportunity to chat informally with the tenants, maybe gather market intelligence, and in the case of a running toilet also keeps the water bill low for the property.

Direct Deposit For Owners

This is a great service to offer if you’re a professional property manager with several clients and properties under management.

Most banks offer this feature for a few dollars a month. You’re able to pay multiple clients on-line and get the owner its money the next day instead of waiting for the proverbial ‘check in the mail’.

If you’re in the property management business, this, along with timely and accurate reporting, is one feature that will build a lot of client loyalty.

Keep An Attorney On Retainer

I’m far from litigious, but trust me, as the market continues to get tough issues will start to pop up that you thought never would. It’s important to have a go-to person for legal advice and spending a little now will save a huge amount later on.

Websites And Internet Marketing

If you don’t have a website set up for your property, think seriously about doing it.

In today’s world so much marketing is done over the internet and if you don’t have a presence on the web you’re missing out on a lot of potential business and exposure.

Websites now days are amazingly inexpensive to create and maintain and will give you so much more bang for the buck than traditional ‘snail mail’ activities.

Real Estate Flyers

Just like with a website, you do not have to spend a lot of money to design a real estate flyer.

I find it best to create a template that can be used for multiple properties. All you have to do is change some copy and graphics for a property-specific or space-specific flyer, and in a few minutes, you’re up and running.

We have great results incorporating flyers into our property websites and in our other on-line marketing activitie

Rental Property Management Tips For New Landlords

On paper, investing in rental property is a pretty easy way to make money. You just have to have the financial capital in place, find a good property for sale in a nice area, rent it out, and then wait for the money to roll in. In reality though, it is one tough business where a misstep could result to major financial problems.

For first-time landlords therefore, it would be a great idea to load up on information that would help them manage their business efficiently. For people who are looking to go into the same business, the same applies.

The good thing about learning how to properly manage a rental property is the wealth of information available online. This article for example aims to help prospective landlords by sharing several tips that would serve them well in starting out in this kind of venture.

First of all, you have to be realistic. You might have read about a success story about one person who started out with one small property and is now raking in millions every year from his bevy of rental properties. It is not all about skills and investing acumen that made that success story possible. There can also be luck involved as the recent housing market collapse showed us. Temper your expectation and you would have a clearer head which would make managing any property easier.

Another tip you should heed is to find the balance between your expected earnings and the effort you are willing to put into running the business. If you are a hands-on person meaning you will take on all the load of managing your property, you stand to earn more. On the other hand, if you are looking to hire a rental property management company, you stand to make less profit because you have to pay for their service obviously.

If you are just on the planning stage, you better know the rules first. Familiarize yourself with federal and state laws governing rental properties. If you fail to do this, you can find yourself in hot legal water in the future. Not only that, you would not know your rights as a landlord if you are ignorant about laws regarding your business.

Remember that rental property investing can be a lucrative business and if you want to be another success story, you have to be well-informed before you make your move in the business.

Five Great Tips On Choosing Property Management

For many, investing in property is a very crucial thing as it involves making an investment for an entire lifetime. This is one realm where no one would fancy taking chances. That’s why it pays to entrust your prized possession only with experienced, reputed property management organizations. Here are five great tips that are crucial for helping you make the right choice with property management organization.

Top Tips

First of all, find out if the company has sufficient knowledge regarding the local market. It is of utmost necessity that your company knows what the local sales market is like as well as the rental market. This way you can be assured that you get reliable advice. Next, ask about the working of the process. Sometimes these organizations claim that they have many people on the job but are not able to live up to proper execution. The outcome lies with quality of work and not the number of people working on it. It is imperative to have at least one person who knows about property like the back of his hand and good software for property management for adequate results. Thirdly, demand a printed assessment of your property. Often, this is free and is a great way to get an idea of how they view your assets-yes with actual numbers! Fourthly, get hold of references. Always speak to other property owners who allowed the same company to manage their investments. This way you can understand their services before actually being a customer! Lastly, pay attention to your relationship. An efficient property manager is skillful in creating as well as maintaining good relationships with you as well as your tenants.

Advantages of Property Management

There are several bonuses of handling your investments with managers. The biggest and greatest advantage is that you benefit by not paying any extra tax. This is because the whole tax is not passed to you rather the tenant ends up paying for it. Another exciting advantage is that there are inflation hedges which mean that the rents may rise on short notice and you would obviously reap the benefits. Also, you can be prepared for instant capital gains if your tenants choose to move out as per the stated contract.

Hire Property Managers Online

Now, you can hire them online at incredibly cheap rates. However, ensure that you are dealing with authentic companies so that you do not get cheated by frauds. You may do this by checking for validity of certifications and license. Do your share of background digging and communicate with previous customers who have benefited from similar services. Go by those suggested by friends and family members who have previously confided in property managers. Their experience is sure to come handy. Delve in to appropriate websites, create comparison lists and evaluate their services before narrowing down on a particular one. End the wait and entrust your assets in the hand of the professionals. You will be surprised by superior results today!

Property Management Tips For Investment Property Owners

Property management knowledge and experience is very important when it comes to managing the properties that are in your portfolio. The care and attention that a property manager takes with an investment property can make a huge difference to the success of an investment property.

If a property manager is careless with the management there are several things that can happen, some of which are listed below:

1. Rents will start to accrue and will be difficult to recover, even to the point where there may have to be legal proceedings

2. Tenants damage the property

3. Maintenance is not kept up to date and over time what would have been ‘repairs’ become ‘replacements’ which is a much more expensive exercise

4. Rents are not achieving full potential because the property is not as attractive and competitive as others on the market due to it looking ‘tired’

5. There is major damage to the property and tenants are not removed promptly

So to ensure that your property will be managed properly here are some tips:

1. Research the area and find out where the good property management teams are. Speak to them and interview them to find out exactly what services they offer and what charges they make.

2. Check that they send you monthly reports on the property and three monthly inspection reports. In this day and age there is no excuse that they cannot take dated photos to send to you.

3. Tell them that you would like to inspect the property with them at least once a year so that you can personally keep updated.

4. Discuss with your property manager your purpose for owning this property as regards cash flow, costs, future goals (rehabbing or freshening up between tenants, etc) so that they know exactly how you want the property managed.

5. If you find that you cannot get the satisfaction you want from a property management team do not hesitate to finish with them. Before you do though, make sure that it has not just been poor communication that has caused the problem and one which can be fixed quite easily.

As a property investor you are in the business of property investing to make money so you do need to take responsibility of the running of it as a business. You need to treat the property manager as an extension of your business and ensure that there is good and frequent communication between both parties. Don’t do as I have heard being done, not make contact then 12 months later wonder why everything is not going as well as it should be. Insist on those reports and make sure that you are reading them and giving them the tick of approval.