Management – Propertyware https://www.propertyware.com Propertyware Mon, 18 Oct 2021 22:01:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.6 5 Multi-Location Management Problems Solved by Property Management Software https://www.propertyware.com/blog/5-multi-location-management-problems-solved-property-management-software/ Mon, 18 Oct 2021 22:01:44 +0000 https://propertyware1.wpengine.com/?p=12627 By: Laurie Mega Managing multiple locations can be a constant juggling act, particularly if you have locations that fall across city, county, or state lines. You may be using different marketing strategies to reach different audiences and there are more than likely to be tax, security deposit, eviction, and even waste disposal laws that are read more

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]]> By: Laurie Mega Managing multiple locations can be a constant juggling act, particularly if you have locations that fall across city, county, or state lines. You may be using different marketing strategies to reach different audiences and there are more than likely to be tax, security deposit, eviction, and even waste disposal laws that are unique to each of your locations. Using the right software can solve many of the most common problems larger property management firms face. A purpose-built property management software solution can help multi-location property managers handle all locations at a high level within a single platform while letting individual offices to get granular with the details that matter in their locations. In this article, we’ve outlined five of the biggest problems multi-location property management firms face that can be solved with a customizable property management platform.

Problem 1: No Clear View of All Locations at the Corporate Level

Meeting with location managers on a regular basis can mean a huge time commitment. You lose time scheduling a monthly or quarterly meeting where you have to listen to every presentation from each manager. Your managers spend time putting those presentations together, too. But what’s the issue with that, you ask? You’re not getting a full picture of your locations’ performance, just the highlights your managers pass on to you — and you’re certainly not getting any of that information in real time.

Solution: A Corporate-Level Dashboard and Consolidated Reporting

Instead of regular meetings that cover only some of the aspects of each location,  you can introduce software with a dashboard that pulls in everything you need to know for each location onto one screen. This feature lets you look up turnover rates, rent collected, maintenance issues, or anything else you need to drill down into. Instead of managers spending time putting together presentations, they can simply enter in the correct data and move on with more pressing tasks that better serve their owners and tenants. A flexible solution will also allow you to create customized reports that give you key data for all, as well as individual, properties. You can even use that information to compare properties in the same or similar areas to analyze KPIs such as rental rates.  

Problem 2: Inconsistent Processes Across Locations

Even for properties in different towns, regions, or states, there are some processes that will look pretty much the same. For example, listings and other marketing tools, as well as the rental application process will most likely follow a fairly similar format. Because those processes are so similar, there’s little point in having every location come up with their own documentation for each action. You want a consistent process that’s in line with your brand. And you want all of your locations reporting the same KPIs back to you so you can compare their performance and identify opportunities for improvement.

Solution: Templated Processes

Create templates you can share with all of your locations to keep rental applications, marketing, maintenance ticketing, and other redundant processes in line with your company’s goals. By implementing a software solution with those capabilities, you save your location managers time and money. When it comes time to check up on a location or handle a specific issue, you’ll be able to work effectively together because you’re all using the same templates.  

Problem 3: Cookie-Cutter Processes Don’t Meet the Needs of Unique Locations

We know what you’re thinking. Templates don’t take into account unique situations at certain locations, forcing property managers to look for work-arounds. And that’s true. There’s no point in using templates to save time if you’re just going to have to spend that time finding a work-around.

Solution: Customization

A good property management software solution will still allow individual locations to make tweaks to templates to account for location-specific differences in some processes. If, for example, one location has a different time limit on sending back security deposits, property managers can adjust for that in their move-out templates.  

Problem 4: Employees Have Too Much or Too Little Access

Okay, now you’re thinking, “What’s the point of templates if employees can go in and change them?” In any software solution, you don’t want certain employees to move carte blanche through the system. Deleted files, rearranged templates, and revised reports can cause a huge headache for you and your team.

Solution: User Profiles

That’s where user profiles come in. Your property management software solution should let you set up user profiles that allow you to restrict access to certain functions. It will also let you lock down certain aspects of your templated processes and documents. Property managers can set up user profiles for vendors, as well. Cleaning and maintenance crews with restricted access can log in to check for new work orders and update existing ones. They can even use it to submit invoices for completed work.  

Problem 5: Reinventing the Wheel Every Time a New Location Opens

When you open an office in a new location, do you find yourself starting from scratch? You know what needs setting up and how to do it, but does your team rebuild all the processes and docs from the ground up? Even if you’re revising from your existing model, that’s a lot of time hunting down every tool, doc, spreadsheet, and app you need, then copying and revising them for the new location.

The Solution: Business Model Cloning

What if you could clone your business model and all that goes with it every time you open a new location? Think of the time and effort saved setting up your new office. Instead of focusing on processes and documentation, your team could focus on bringing in more doors and delivering the best possible service to existing ones. As the owner of a multi-location property management firm, you have to stay high level and focus on the health and trajectory of the business. While it’s important to keep your eye on your locations, you can’t get bogged down in minutia. That’s why it’s important to set up documentation and processes that allow you to manage individual locations quickly and effectively. Best-in-class property management software can help you cut down on time, money, and staff by automating and customizing every part of your property management business—no matter where your portfolio takes you. Explore the benefits of an all-in-one, open-platform property management solution, built specifically for multi-location property management companies.

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]]> 10 Questions You’ll Want to Know About Propertyware (FAQ) https://www.propertyware.com/blog/propertyware-faq-10-questions-youll-want-to-know/ Tue, 25 May 2021 15:34:05 +0000 https://propertyware1.wpengine.com/?p=12445 By: Tony Maiella When you’re thinking about a property management software platform – especially one as flexible, customizable, and powerful as Propertyware – you’re bound to want to thoroughly analyze what it can do for your business. With that in mind, we sat down with the Propertyware partnerships team to answer the most common questions read more

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]]> By: Tony Maiella When you’re thinking about a property management software platform – especially one as flexible, customizable, and powerful as Propertyware – you’re bound to want to thoroughly analyze what it can do for your business. With that in mind, we sat down with the Propertyware partnerships team to answer the most common questions they get from potential clients who are kicking the tires.  Looking for a Propertyware FAQ? You’re in luck.

When you say that Propertyware’s software is customizable, what do you mean?

We like to say that Propertyware allows you to do business your way. What that means is that the software gives you the ability to customize your workflows and data, customize your reporting, and integrate with any software in your tech stack through an open API. It’s built for property management businesses that need a high level of flexibility with both their process and, potentially, the amount of geographic locations they manage.

What are the benefits of a solution like Propertyware that’s customizable and open?

The customization we offer with custom fields, dashboards, and reports empowers you to gather, track and report on anything you’d like. That coupled with our open API eliminates the headaches that come with managing several sources of data. Plus, you’ll have a more scalable solution over the long term. With Propertyware, if you have more complex needs down the line, you won’t be limited by the software and can make adjustments as your business changes.

What’s an open API and how does it work?

Think of an open API as a waiter that takes your order and serves up the data you ask for according to the connections you’ve made. In a nutshell, you’re able to connect to a third-party software, and move information to and from Propertyware. For example, some customers use it to connect external maintenance software or Customer Relationship Management (CRM) software for owner and tenant leads.

How can Propertyware help businesses with multiple locations?

First, Propertyware lets you operate from anywhere since it’s web-based—there’s no app necessary. Additionally, you can design the infrastructure for parent and child hierarchies, which is extremely useful if you have a complex, multi-location business structure. Plus, you can set up unique user profiles to manage what data each staff member has access to and what actions they’re allowed to execute.

How does Propertyware make it easier to communicate with tenants and property owners?

Propertyware offers mobile-friendly portals for owners and tenants and also includes communications tools like text messaging and email. For your owners, you can schedule reports that they want to be sent automatically every month, and that’s just the beginning.

How am I able to customize reports for property owners and investors?

From accounts receivable aging to rent roll, we offer over 175 pre-loaded reports based on what we have seen our customers use the most. You can customize those reports however you like.

How does onboarding work and how long does it take?

Onboarding is a team effort. Once you decide to work with us, we assign an Implementation Consultant (IC) to partner with you. All in all, the process takes approximately 45 business days, and your IC will have multiple phone calls to discuss what’s needed to keep the onboarding process moving smoothly. 

How does data migration work?

Data migration is a service we offer if someone would like us to move their current, active information into their new Propertyware account. This would be information such as tenant name and address, unit number etc. 

How is Propertyware different from other property management software platforms?

Propertyware sets itself apart through customization, robust accounting, and the added security of handling everything in-house. We don’t use any third parties for payments or background screening.

What additional resources are available?

We offer a comprehensive academy for our clients to learn about any topic within Propertyware along with other industry best practices. We also offer instructor-led virtual classes on specific topics as well as an “open mic” session where clients can bring up any questions they have. To learn how Propertyware can be put into action for your business or for any other questions you might have, reach out to our partnerships team and schedule a demo.

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]]> 6 Steps to Grow Your Property Management Business to Multiple Locations https://www.propertyware.com/blog/6-steps-to-grow-property-management-to-multiple-locations/ Tue, 02 Feb 2021 12:00:31 +0000 https://propertyware1.wpengine.com/?p=12320   Photo by Joey Csunyo on Unsplash By: Laurie Mega In their 2021 State of the Industry Report, Buildium found that 77 percent of surveyed property managers anticipated portfolio growth in the next two years. That’s an encouraging number, reflecting the industry’s strength, despite the recession. If you’re one of those property management companies, but read more

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]]> Joey Csunyo on Unsplash By: Laurie Mega In their 2021 State of the Industry Report, Buildium found that 77 percent of surveyed property managers anticipated portfolio growth in the next two years. That’s an encouraging number, reflecting the industry’s strength, despite the recession. If you’re one of those property management companies, but you’re looking to grow to new locations, you may not know where to start. It’s one thing to add properties in areas you already cover, but it’s quite another to make the leap from one to two or more locations. Without a growth strategy, you may find yourself managing properties in areas out of your company’s comfort zone, where the target market — and even regulations — are different. You need to make sure you have the right team and the right infrastructure to support your properties. If you’re looking to expand into a new city, region or state, take the time to plan that growth. If you’ve already started expanding organically, it’s not too late to put a plan in place to keep your growth at a pace your company can handle. In this article, we’ll discuss the steps to take to move your company from one to multiple locations successfully.

1. Devise Your Expansion Plan

There are three main ways you can expand into a new area.

Bring on New Owners Directly

The first option is to bring on new owners in other areas. This is probably the best way to control your growth, because you can add properties one at a time. That allows you to really measure your expansion success as you add new properties.

Acquire Another Property Management Company

One way to expand into another area is to look for management companies that are looking to sell. But before you agree to acquire another business, look for the following:
  1. The Owner agreements are in good order and the company has good relationships with the owner because when acquiring the company you are purchasing these contracts.
  2. The company is in good standing with the IRS and has no outstanding debts.
  3. The company has reasonable operating margins and decent profits.
  4. The company is in good standing with the Department of Real Estate
Basically, you’re looking for a company that compliments your business strategy and will add to your profits and get you into a new area without much effort. Keep in mind, too, that when you bring another company, you’ll have to convert it over to your systems and eliminate redundancies. If you acquire a company that uses the same property management software can make the transition easier.

Set Up a Franchise

Another option but one that is a different model is to set up your company as a franchise, bringing on other property managers to manage their locations under your brand. A franchise model allows your business to expand without geographic constraints, but it will change your business model. You will now be in the business of selling franchises and supporting franchisees, as Entrepreneur points out. The first step is to register with the Federal Trade Commission. After that, you’ll have to set up a franchise model, build your brand strategy, determine your franchise fees, and the operation guidelines all franchisees must follow.

2. Research Your Target Areas

If you want to expand to other markets, now’s the time to do some research. First, look at the opportunities out there, and where the market is strong. Even before the pandemic, for example, single-family home rentals were growing in suburban areas, and they really took off when the pandemic began. Pinpoint exactly where you want to seek out new owners with homes or properties to manage. Then, look at how their management requirements differ (if at all) from the properties in the locations you manage currently. Don’t assume you can apply the same rental, marketing and maintenance processes that you have now. New areas are going to have different rules, different demographics, and even different cultures. For example, you may find you have to adjust your marketing strategy for your new area based on demographics. Your new area may have a booming tech industry that attracts workers from overseas. It would behoove you, then, to understand where they look for housing and what is important to them in a rental unit.

Get Familiar with Local and State Regulations

State and city regulations for rental properties vary. If the properties you’re looking at are located in outside of your current properties’ area, make sure you have a clear understanding of the following laws and regulations:
  • Property and other taxes
  • Zoning
  • Trash and recycling removal
  • Fair housing and accessibility (HUD) guidelines
  • Property maintenance and safety issues
  • Contracts and notices
  • Lease renewal
  • Delinquency and tenant eviction
  • Tenant screening
  • Rental registrations
  • Occupancy laws
  • Utility operations
For example, one property management company that uses Propertyware expanded to Phoenix, AZ, where businesses have to pay a transaction privilege tax (TPT). It’s the only place they have to pay that tax, so they had to adjust their forms to reflect the tax in that area. You may even want to hire a lawyer or accountant (or both) who lives in your property’s area, someone who understand local laws and ordinances.

3. Assess Your Company’s Needs to Expand

This is the perfect time to assess your company’s current management processes. Look for gaps you need to fill, as well as current procedures you can replicate. Look for places where you company should grow, as well, to meet the needs of new clients.

Staff

There are three actions you should take, here, to make sure you have adequate staffing keeping in mind that you are moving into other geographic areas.
  1. Take a look at your staff’s current workload. Talk to your employees to understand how work is getting done, and whether or not they feel they need help already. Shore up each department by shifting responsibilities or adding new team members. For example, your receptionist may be able to take on more customer service-related tasks.
  2. Determine where you’ll need to staff up when you add new properties. You may need more staff in rental maintenance, for example. Or, you may need to hire remote workers in your target areas who have experience managing properties there.
  3. Look for areas where you can hire outside vendors instead of permanent staff. You may need more cleaning or lawn maintenance services for your new properties. Talk to your current vendors to see if they work where your new properties are. If they don’t, they may have recommendations. If your new properties are in another county or state, do your research before choosing your vendors.

Infrastructure

What kind of software and equipment will you need to bring on properties in new locations? Will you need more computers or phones? Will you need to add software licenses for accounting, communication, or even word processing apps? If your current software stack is piecemeal, you may want to consider investing in a more comprehensive property management software solution, one that allows you to streamline the application, screening, and lease-signing processes; store documents; communicate with tenants and clients; and even integrates third-party vendors into your system. For example, Propertyware allows you manage all of our locations in one place so you can easily view consolidated dashboards and reports across all locations and monitor local operations from a single sign on. You can also create form templates that you can push out to all of your locations to ensure consistency. You can then customize them at the location level for specific needs, such as snow removal in Colorado and irrigation in Nevada.

4. Determine Your Budget

You know the old adage; you have to spend money to make money? That’s certainly true when you expand your real estate portfolio. Of course, adding properties means more revenue for the company, but that revenue won’t be there on day one. Look at your operating margins and how much those will increase by adding new properties. Your goal is to maintain or lower your operating margins to keep profits at or above their current levels. So, how much will you have to increase your budget to add new hires, new software, or new equipment? Will there be new business taxes to pay? Will the money coming in from new properties keep your profits strong? It stands to reason that any new money coming in is a good thing, but not if the cost you’re putting into new properties outweighs the benefits. For example, if a new client requires a high level of attention, the time and money you’re putting into that client may not benefit your bottom line in the end.

5. Assess and Adjust Regularly

Once you’ve put your growth plan into motion, don’t just leave it to collect dust. Assess how your new and old properties are doing. Talk to clients, residents, and staff to ensure your business is meeting all of their needs, and that you haven’t stretched yourself too thin. Keep an eye on your cost and profit margins and look for areas you can increase efficiency or even add new fees and services. Finally, take a hard look at all of your owners to determine if any of them are taking up too much of your time. If they are, it may be worth replacing them with other owners so you can maintain your growth goals.

6. Know When to Stop

Finally, have a pre-defined stopping point – a certain number of rental properties or a target profit margin that defines success for you. Without this benchmark, you may find yourself growing to quickly for your plan. Making that leap into managing homes across multiple locations can be a little tricky, but all you really need is a solid plan. Shore up your current processes and make sure they’re running smoothly before venturing out to new markets. Fill gaps in staff, marketing, infrastructure, and knowledge of your properties’ area. Once you’ve implemented your plan, check and check again. Stick to your plan and adjust where you need to, and you can start building a multi-regional portfolio.

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]]> Pet Screenings: When Are They Useful and When Are They Not a Good Idea? https://www.propertyware.com/blog/pet-screenings-useful-not-good-idea/ Wed, 24 Jun 2020 18:00:29 +0000 https://propertyware1.wpengine.com/?p=11992 By Laurie Mega   Allowing pets in your units is a calculated risk. There’s always the chance a dog, cat, or other pet could cause damage to your property. On the other hand, 72 percent of American renters have pets, according to the Humane Society. So prohibiting animals may cost you. But you can minimize read more

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]]> By Laurie Mega   Allowing pets in your units is a calculated risk. There’s always the chance a dog, cat, or other pet could cause damage to your property. On the other hand, 72 percent of American renters have pets, according to the Humane Society. So prohibiting animals may cost you. But you can minimize the risk pets can pose by implementing a pet screening process and creating rules around pets in your properties. You may even consider adding a monthly pet fee to the rent. Of course, this only applies to animals considered pets. If you have a current or prospective tenant making what’s called a reasonable accommodation request for a service animal, you can’t restrict or prohibit the animal. In this article, we’ll discuss the pet screening process and when it is not appropriate to require one.

How Does a Pet Screening Work?

When a prospective tenant applies for one of your units, you can include a pet application along with your human one. A current tenant can also fill one out for a new pet. A pet application, also called a pet resume, collects basic information, including:
  • Number, names, types, and sizes of pets
  • A photo of each pet
  • Registration information
  • Veterinary information
  • History of destructive or aggressive behavior
  • Training certifications
  • The name of a renters insurance policy (if you require it)
Basically, you’re trying to get as much information about each pet as you can. What you do with this information is up to you. You can use it to approve or deny pets on your properties, or you can simply keep it on file should you ever have an issue with your tenant’s animals. If your city bans certain breeds of dogs as house pets, you can determine if your tenant will be violating that ban. If they have more unusual pets such as ferrets or exotic birds, you can decide if these are the kinds of animals you’re okay within your properties. It’s also helpful information for members of your staff, as well. If a property needs maintenance, for example, you can share information about animals on the property with your crew. Making them aware of a pet on the property ahead of time can prevent an animal from escaping or an allergic reaction. If a dog doesn’t like strangers, you can instruct your tenant to restrain the animal before your maintenance team arrives. Want help managing all your pet screening needs? Visit PetScreening.com for more information.

Pets vs. Service and Emotional Support Animals

There are instances where a property manager or owner can’t require a pet application or screening. That’s when an animal, usually a dog, qualifies as a service animal for a disabled person. When a disabled person makes a reasonable accommodation request, owners can’t charge pet fees or require a deposit. Any restrictions your owner may have on the size or weight don’t apply, either. Nor do city restrictions on breeds. Keep in mind, though, that service animals still have to meet city and state requirements on registration and vaccinations. When an animal qualifies as a service animal under the Fair Housing Act (FHA), there is only one instance where a service animal can be restricted or banned. That is if the animal poses a direct threat to the health and safety of others. In January of this year, the Department of Housing and Urban Development (HUD) released new guidelines on service and emotional support animals. The regulations are based on both the FHA and the Americans With Disabilities Act (ADA), and discuss when an animal is allowed as a reasonable accommodation and when it isn’t.

What Is a Service Animal?

Under the ADA, a service animal is
any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. Other species of animals, whether wild or domestic, trained or untrained, are not service animals for the purposes of this definition. The work or tasks performed by a service animal must be directly related to the individual’s disability.
Note that the definition covers dogs only. Service animals of any other species are considered pets under the FHA, but there may be state or city regulations that include other animals under the service definition. A person with a disability can also make a reasonable accommodation request for another type of animal if they can prove they can’t use a dog; for example, if they are allergic. If a current or prospective tenant requests an accommodation for a service animal, there are only two questions an owner or property manager can ask:
  • Is the animal required because of a disability?
  • What work or task has the animal been trained to perform?
You cannot ask about the person’s disability, nor can you require documentation to prove that they are disabled.

What Is an Emotional Support Animal?

Under the FHA and the ADA, an emotional support animal doesn’t count as a service animal and can be treated as a pet. Just keep in mind that state and local laws may make accommodations for certain types of emotional support animals. An emotional support animal is different from a service animal in that it doesn’t perform specific work or tasks for its owner. Instead, its presence provides emotional stability. There have been a lot of stories in the news about accommodations for emotional support animals from cats and dogs to miniature horses and snakes. Essentially, it’s up to you and your owner to determine what you will allow, provided you stick to state and local regulations. If you want to make sure you’re compliant, NOLO provides a list of each state’s laws and regulations. Allowing pets opens up a larger pool of prospective tenants, and putting measures in place to protect your properties is a good idea. But it’s important to remember that accommodations have to be made for tenants with disabilities. According to HUD, 60 percent of the FHA complaints made concerned denial of reasonable accommodations and disability access. “In fact,” writes HUD “such complaints are one of the most common types of fair housing complaints that HUD receives.” Understanding when and how to screen pets and the FHA and ADA laws around service animals will keep you on the right side of the law and allow you to provide a wonderful rental experience for all of your tenants.

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]]> 7 Steps for Writing Effective Rental Listings https://www.propertyware.com/blog/7-steps-for-writing-effective-rental-listings/ Wed, 10 Jun 2020 18:59:02 +0000 https://propertyware1.wpengine.com/?p=11743 By Laurie Mega   According to ApartmentList’s 2020 National Rent Report, rent growth has flattened over the last two months, a time when rental activity usually begins to heat up. Rising unemployment and shelter-in-place orders have made it nearly impossible to move or even think about moving. But as the restrictions are eased and the read more

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]]> By Laurie Mega   According to ApartmentList’s 2020 National Rent Report, rent growth has flattened over the last two months, a time when rental activity usually begins to heat up. Rising unemployment and shelter-in-place orders have made it nearly impossible to move or even think about moving. But as the restrictions are eased and the economy slowly opens, the rental market is expected to wake up again. If you have leases that are ending or vacant homes you’ve been sitting on (although we sincerely hope not), now is the time to get your listings ready. Rental listings are a fundamental part of your marketing strategy. A well-thought-out, well-written listing will attract the kinds of tenants you’re looking for. That’s not to say that you’ll be picking and choosing your tenants based on any demographic. That would be discriminatory and against the law. But a good listing can attract the kinds of tenants that are really looking for what you have to offer. After all, you don’t want to waste an applicant’s time if they need to be near a public elementary school, and there are no public schools in your area. To create a dynamite listing that attracts the right kinds of applicants, we’ve put together some tips.

  1. Know Your Audience

Before you do anything else, research your audience, the kinds of tenants your properties attract. Begin with your current tenants. Who are they? Are they older or younger? Do they have families or are they single professionals? Get a good demographic picture. Then ask them why they chose your property. Their answers will help you highlight the right features and amenities of your homes. Knowing your audience will also help you determine where to post your listings. You probably know that younger residents (millennials and Gen Z) prefer the convenience of mobile. They’re more likely to use a mobile app like Zillow or HotPads to search for a place to rent. Meanwhile, Gen X and baby boomers are the biggest demographic on Facebook, and 25 percent of users on Craigslist are between the ages of 25 and 49. Age isn’t the only demographic you can use for posting. Location, income, job type, and marital status, among others, can also influence where you post. Just remember, you’re posting to the audiences who are most likely to rent your properties, not to the audiences you would choose to rent your properties. As we said before, that would violate housing discrimination laws.

  1. Know Your Neighborhood

Before writing your own listing, check out listings for similar properties in the same neighborhood, particularly for management companies that are filling vacancies successfully. Study how they talk about their features and amenities. Look at their pictures to see how they’re presenting their properties. Finally, look to see if there’s anything missing that your property has; something that makes you stand apart. Perhaps your rent is less expensive for the same size unit. Maybe your unit has a good view or space for an in-home office (a feature that has become more popular as people work from home). Bottom line, keep up to speed on the kinds of properties available in your area and how you stand out among them. Those qualities that make you unique should be featured in your listing. Also, know what your neighborhood has to offer. Are you close to public transportation? Are there a lot of big employers near you? What about good schools? Whatever your audience is looking for, if your neighborhood has it, feature it.

  1. Know Your Property

This one may seem pretty obvious, but if you manage multiple properties, it can be pretty tough to know details and amenities for every single one. Take the time to refresh your memory by doing a walk-through of vacant properties, or reviewing old listings. If the unit is still occupied, ask if you can set up a time to take a walk-through. Better yet, ask your current tenant what they like best about living there.

  1. Show, Don’t Tell

Then, write a listing that gets straight to the point. Show your audience how great your property is instead of telling them. For example, don’t start a listing with something like this: This is a lovely single-family home that’s perfect for young families. Instead, try this: A 1,800-square-foot single-family home with a finished basement, large back yard, and space for a nursery or home office that’s close to nationally ranked schools. Include as many of those features your audience is looking for to give them a good picture of your property.

  1. Be Descriptive

English teachers hate it when students use words like nice and good in their work. That’s because these adjectives don’t really tell you anything. The same is true of apartment listings. A nice view doesn’t tell the reader what’s outside the window. Good lighting doesn’t help, either. That goes for superlatives, too. Words like best, biggest, and closest don’t really do much to describe your property. Take these examples: This house has the best view in town. The bedrooms have the biggest closets. The unit is the closest one in the neighborhood to public transportation. Think about it. Your property could have the best view, the biggest closets, or is closest to public transportation compared to other properties. But that doesn’t mean the view is great, the closets are big or you’re really that close to the train. Instead, try this: This house has 180-degree views of the lake and surrounding park. Walk-in closets are big enough for two full wardrobes and feature built-in shoe racks. The unit is a 15-minute walk to the nearest commuter rail stop. Those sentences tell your audience a whole lot more about the kind of property you’re renting.

  1. Include Really Great Photos

You may be tempted to take photos as part of your walk-through, but don’t. Wait until your property is empty, the walls are repainted, and the whole unit has been professionally cleaned. Remember, you want to put your best foot forward in your listing. For great pictures that help you do that, follow these tips:
  • Take several pictures from different angles in each room.
  • Take your pictures when you have the most light available.
  • Opt for a wide-angle lens instead of a fish-eye lens, which distorts pictures.
  • Take high-quality images and use a tripod to avoid blurry or pixelated images.
  • Don’t include people in your shots.
  • It’s best to wait until a property is vacant, but if your tenant hasn’t moved out yet, make sure the property is tidied up and that personal items have been put away.
Never include a listing without images, or with just a few shots. It gives the impression that your property has something to hide.

  1. Consider a Listing Widget

Creating listings for each property and posting them to the right platforms can be time-consuming. There are tools that can help you streamline the process, however. A listing widget, for example, can help you create consistently branded listings that prospective tenants can search and filter easily. And you can post your listings simultaneously on several platforms with just one click. Finally, a listing widget makes your listings mobile-friendly and allows prospective tenants to apply online. Your listings are the foundation of your marketing strategy. They are your audience’s direct line to your available properties. Writing a listing that features the best parts of your properties and cuts out all the fluff will help you attract tenants and build your reputation as a provider of fantastic rental experiences.

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]]> Online Leasing: How to Attract Great Tenants https://www.propertyware.com/blog/online-leasing-attract-great-tenants/ Thu, 04 Jun 2020 18:00:17 +0000 https://propertyware1.wpengine.com/?p=11741 By Laurie Mega   Even before the global pandemic, the ease and convenience of online leasing made it a popular choice for property managers and tenants alike. With online leasing, prospective tenants can find you and contact you via your site whenever it’s convenient for them, even in the middle of the night. That means read more

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]]> By Laurie Mega   Even before the global pandemic, the ease and convenience of online leasing made it a popular choice for property managers and tenants alike. With online leasing, prospective tenants can find you and contact you via your site whenever it’s convenient for them, even in the middle of the night. That means more leads for you. And with everything from applying to signing to document storage done online, it’s much easier to keep track of the process and keep it moving, even on the go. Now that social distancing has become the new normal, the benefits of online leasing are more important than ever. But how do you attract a whole bunch of great tenants to your properties online? We have some tips to help you get going.

Syndicated Listings

First things first. Your listings should be optimized to stand out. A great listing includes the following:
  • Lots of great images that highlight all of the features and amenities of your properties
  • Concise descriptions that detail exactly what your properties have to offer
  • Summaries of all the things the neighborhood has to offer
  • Consistent branding with your site as well as your other listings
Once you have a strong listing that speaks to your target audience, you need to place it on all the right platforms. That includes listing sites, social media, and your website. A property management software or a listing widget can help you create branded listings that you can post in several places at once with one click. Prospective tenants can then contact you or apply for the property from the listing.

Think Beyond Ads and Listings

Of course, posting your listings and advertising your units is important. But you’ll get more interest if you build a good reputation with renters. Using your social media channels, online reviews, and community events can help you do that.

Leverage Your Social Media

Did you know that 30 percent of millennials engage with a brand via social at least once a month? Leverage your social media channels to build a large following and become a trusted resource in your community. Think of your social media platforms as a way to start a conversation with your audience. To do that, post more than just your listings. Post about events in your area, or helpful information having to do with rentals. You can even include fun memes or images from time to time. At this time, you may be sharing articles about how you’re conducting open houses while maintaining social distancing or your local government’s plans to reopen the economy, for example.  And post regularly. Businesses that post only occasionally lose their audiences. The important thing to remember is to know your audience, get on the platforms they use, and post the kind of information they appreciate. Then, when you do post your listings, you’ll have a large, engaged audience to click and share your posts.

Collect Online Reviews

Online reviews should be a big part of your marketing plan. In fact, almost 97 percent of millennials make their purchases based on online reviews. They don’t trust advertisements alone. If your tenants come to you with positive feedback, thank them and encourage them to write a review of your business and your units on sites like Yelp or Apartment Ratings. Just remember, you can encourage tenants to write reviews, but you can’t make it a requirement of their tenancy or tell them what to write.

Get Involved in the Community

When people think of renting or property management, you want your name to pop in their heads. One great way to do that is to get involved in your community. Sponsor an event (online or otherwise) or local team. Donate time, materials, or money to a nonprofit. Getting involved in your community is a win-win. You get your name out there and a deserving organization gets the resources it needs.

Optimize Your Website

Optimizing your website allows prospective tenants to find you through search engines like Google. It also makes your site user-friendly, so when people do find you, they can navigate to find what they need. Here are the steps you need to take to optimize your site:
  • Create a keyword strategy: Keywords are the words and phrases users enter into search engines when looking for something. Including them on your site helps Google and other search engines match you to the right search queries.
  • Optimize the back end: The back end of your site is everything that’s working behind the scenes to make it searchable. File names and alt text for images also tell Google what your site is about.
  • Create User-Friendly Pages: Pages should be easy to read and easy to navigate. Forms should be easy to fill out. Listings should be easy to find.
  • Make It Responsive: Most people are browsing sites from their phones or tablets. Don’t get caught with a site that’s formatted only for a computer screen. Making it responsive means your site will fit to whatever device prospective tenants are using.
If you’re looking for an easy way to create an optimized site, check out Propertyware.

Use Your Relationships

Networking is a great way to find new tenants. After all, wouldn’t you rather have a referral from a trusted source? Here are some great ways to get those referrals.

Tenant Referrals

Referrals from current tenants are a great way to bring in good tenants. If you have a good relationship with your tenants, chances are they’re going to recommend trustworthy, responsible people for your vacant units. To incentivize tenants, you could even set up a referral program. Offer a gift card or access to exclusive amenities to tenants who refer someone who signs a lease.

Realtor Referrals

Stay in touch with realtors. They’re well connected in the housing community and can refer prospective tenants to your properties. Just note there might be a finder’s fee involved.

PM Referrals

It may seem counterintuitive to rely on other PMs for referrals, but it’s actually not a bad idea. If there are other PMs in your area, for instance, who serve apartment complexes and they come across someone looking for a single-family home, they can give that person your name. And you can do the same for someone looking for an apartment setting. Helping someone find the right home, even if it’s not with you makes you stick in their minds. Then, they may recommend you to a friend because they remember your excellent service. The idea of contactless leasing is an attractive one these days. And it absolutely can be done from beginning to end. Leveraging all of your online tools to attract the best tenants will make the whole process that much easier.

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]]> A Property Manager’s Guide to COVID-19 Resources: Regulatory Updates, Financial Assistance & More https://www.propertyware.com/blog/property-managers-guide-covid-19-resources-regulatory-updates-financial-assistance/ Fri, 10 Apr 2020 16:00:38 +0000 https://propertyware1.wpengine.com/?p=11659 By Laurie Mega   To help you and your team navigate this uncertain time, we’ve collected a  comprehensive list of Coronavirus resources for property managers. Top Coronavirus Resources for Property Managers Coronavirus Preparedness for Apartment Firms (National Multifamily Housing Council) COVID-19 Resource Center (RealPage) Covid-19 Resources (NARPM) Cash Flow Community (Slack group) Understanding the Impact read more

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]]> By Laurie Mega   To help you and your team navigate this uncertain time, we’ve collected a  comprehensive list of Coronavirus resources for property managers. Top Coronavirus Resources for Property Managers Understanding the Impact of COVID-19 Regulations on Property Managers Learn how the new CARES Act applies to the rental sector, evictions, and shelter-in-place. Working with Renters Impacted by COVID-19 Layoffs Preventing the Spread of Coronavirus Within Rental Properties Guidance for Employers During the Coronavirus Pandemic Financial Resources for Small Businesses During COVID-19 For more resources, please visit our COVID-19 resource center.

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]]> Property Manager Job Description https://www.propertyware.com/blog/property-manager-job-description/ Thu, 31 Oct 2019 18:37:16 +0000 https://propertyware1.wpengine.com/?p=11352 Most of you already know how critical it is that you find and hire the absolute best possible property manager job candidate you can, to provide tenants and owners alike with the absolute best customer service possible while increasing the net operating income for each of your managed properties. So how do you do that? read more

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]]> Format of an Awesome Property Manager Job Description
  • Eye-Catching Job Title You need to stand out from the crowd to attract the best, so make the job title jump out from the page. Include the name of the position as well as a few of the best selling points of this job, like a competitive salary or excellent benefits.
  • Humanized Intro Ok, the opening paragraph may not a tearjerker, but you get the drift. An emotional pitch can show you are an engaging company of human beings and not a drab robotic company. A single paragraph listing the top three most exciting aspects of your company and their job will go a long way.
  • Tell Your Company’s Story What interests candidates is knowing your company has an energetic and engaging culture, is stable and professional, and works with and for interesting clients and technology.
  • Sell The Job Posting Include the bare essentials of perhaps three must-have requirements but avoid laundry lists, you want the best candidate to interview with you so don’t scare them away. You can always go into further details when they are sitting in front of you, but until that time keep the posting informative with hours of work, salary, office culture, benefits, and perks. Keep it interesting but concise.
  • Location, Location, Location Not only for buying or selling real estate, but also for attracting top talent. If you own a small or rural business, it can be competitive to get the best so you have to let job seekers know why they want to work for you. Put it all out there if it’s relevant; short commutes to downtown, great schools, low crime rate, thriving arts district, busting at the seams with restaurants and shops. Whatever the ‘it’ factor is for your location, sell it.
  • Next Steps Let them know what happens next by detailing your entire hiring process. Keep it brief, but keep it clear and show the steps like; Apply-Email invitation to Interview-Phone Interview-In-Person Interview-Start. A great candidate may be motivated to work for you if they know by this time next week they could be earning a paycheck.
  • Run It By The Crew The best way to know you are writing a killer job posting is to run it by the people in your office. Seek honest and concise feedback, and make the changes if you all think it’s right. Also, remember they need to know what you’re saying to the new hire about your company.
  • Follow-up with Email If your hiring process promises prize candidates that they’ll be receiving an email, send them an email. Of course, you need to do some early vetting here, and this step although at the bottom of the list is still vital. You can sort out quickly who it is you want to pursue further even before getting to the interview stage. And remember to keep the emails personable but professional, clear, concise and reinforce to the candidate that the role they are interested in will be one worth interviewing for.
[Additional Reading: How To Start a Property Management Company]

Example Job Description No. 1: For an Experienced Property Manager

W-9 Employment Tax Form Job Summary The Property Manager is responsible for achieving the highest possible property net operating income through the implementation of effective cost control and revenue improvement programs. Specifically, the Property Manager will develop and implement marketing plans, operating budgets and forecasts to meet the company and owner’s objectives. A minimum of three years prior experience in Property Management is preferred. Industry designations like CPM, CAM, NALP, or MPM is a major plus. Experience with leading property management industry tools like Propertyware and RealPage is desired. Please respond to this ad with your resume and salary requirements. We offer competitive pay and company paid benefits. EOE Job Type: Full-time Salary: $50,000.00 to $65,000.00 /year

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Example Job Description No. 2: For an Assistant Property Manager

Job Summary The Assistant Property Manager is responsible for effective computing, classifying and recording numerical data to keep financial records accurate. They assist with the day-to-day leasing, marketing and resident relations for the community. Essential Functions
  • Process rental payments and obtain primary financial data for property accounting records
  • Prepare and deliver notices to residents
  • Provide exceptional service to residents, future residents and internal team members
  • Listen to resident requests, concerns and comments
  • Assist in marketing activities as needed
  • Assume Property Manager’s duties in their absence
  • Follow Bridge policies and procedures and comply with Fair Housing, state and federal laws
  • Follow all safety procedures and notify supervisor of safety hazards
  • Regular, on-time attendance
  • Special projects and other responsibilities as assigned
[Additional Reading: Service Animals and The ADA: The Definitive Guide For Property Managers] Skills
  • Competence in the use of standard office equipment including telephones, Internet, fax machine, and photocopier
  • Intermediate computer and data entry skills
  • Must be professional, energetic, organized, detailed and service-oriented at all times
  • Ability to meet deadlines
  • Strong oral and written communication skills
  • Ability to communicate with residents, co-workers & management tactfully
[Additional Reading: 5 Skills That All Successful Property Managers Need] Education High school diploma or equivalent; Must possess a valid Real Estate Agent’s License (most states) Experience Minimum of two years combined leasing, marketing, or operations experience Work Environment Regular office work, however, occasional outside duties in all weather conditions Salary  $33,000 to $56,000 depending on experience and education. [Learn More: How To Become a Property Manager] The job description is the part where you go into detail. It should indicate the responsibilities and expectations that your company has for the new employee. In case you’re still not sure, see the points below:

Property Manager Hiring Considerations

Smiling female property manager talking to a prospective tenant on the phone They’ll be expected to take on responsibilities which include daily operations, finding, screening and keeping qualified tenants, overseeing the financial operation of the properties they manage and keeping their properties well maintained and attractive to future tenants with the mutual goal of preserving the value of the rental property.

Facility Management

One of the primary jobs of your property manager is ensuring the real estate under their management is well-maintained and occupied. This can include promptly responding to resident complaints such as emergency maintenance issues, the scheduling of regular maintenance or repairs, managing or finding reliable contractors and negotiating their contracts, and of course conducting regular walk-through inspections of the properties they manage.

Marketing

This can often be overlooked by property managers, but is a key factor in driving interest and therefore ensuring rental rates and occupancy of properties is sustainable. A lease won’t be signed if new tenants are not aware that your property is available. When discussing the Property Manager Job Description with your candidate, spend some time on this point with them. Let them know that the vital part of their job, includes finding qualified tenants to fill vacant properties through advertising, prompt follow-up of inquiries, and showing of apartments to prospective residents.

Tenants

Your property manager’s job should focus on keeping tenants happy wherever practically possible and resolving the tenants’ complaints promptly. Also, a huge piece of the property management puzzle comes from screening and selecting qualified tenants. Finding the best possible renter first can save your property management company a lot of money and headaches later. Speaking of headaches, creating and enforcing of rental agreements is a desirable property manager skill, invariably at some point, a tenant will break a condition of their lease agreement more than once and have to be evicted. Job seekers should understand that this is the least fun part of their job that without question must be carried out if the time comes. Last but not least, collecting security deposits and rent is the lifeblood of your business and prompt consistent collection can drastically increase your NOI.

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Reporting

This is a business that relies on consistent reporting. Another desired skill in the property manager’s job description is the ability to keep and maintain records. It’s unlikely you’ll find a property manager with Accountant-level bookkeeping skills, but if they are truly seasoned they should have an understanding of how to maintain the following;
  • A balance sheet as a snapshot of a property’s financial position
  • A general ledger which provides greater details from the balance sheet, income and expense statement that reflects the actual income and expenses compared to the budgeted income and expenses
  • Accounts payable reports which provide property owners a money trail of expenses and debts paid
  • Tenants receivables which go into detail for things like rent collected/delinquency/deposits
  • Copies of reconciled bank statements for owners that verify all of the above

Owners

The other side of the coin from residents is property owners. Without the owner, you’d have nothing to manage. So, it is key when you look to hire a new manager that you highlight the fundamental property manager duty is to drive net operating income (NOI) and keep the owners happy. Put in place processes where property management includes the sensitive responsibility of communicating with property owners regularly on issues like vacancies, financial issues, resident issues and the physical condition of their rental property.

Salary

It isn’t always true that you get what you pay for, but is almost certainly true that if you pay peanuts you’ll get monkeys. So, keep your salary offerings truly competitive. In order to attract the interest of an experienced property manager, understand that the salary offered must reflect the value you place in them. The national average for experienced property managers is approximately $54,000 per year but can range from $36,000 up to $79,000 depending on experience, qualifications and the location of your real estate business.

General

Finally, you’ll want an organized self-motivated job seeker with good references that possesses strong communication and interpersonal skills and a real estate license (if your state requires that). As well as someone who is experienced with local, state and federal housing laws and competent with general office and financial reporting software. If you need someone that can contribute right away while being a positive addition to your company, follow the steps we went over in this article. If you want the best available, they need to know you want them and what you want from them. Best of luck and happy hunting!

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]]> Reducing Risk and Saving Time through Vendor Credentialing https://www.propertyware.com/blog/reducing-risk-saving-time-vendor-credentialing/ Fri, 06 Sep 2019 21:10:25 +0000 https://propertyware1.wpengine.com/?p=11288 Hiring a vendor without verifying criminal records, insurance and financial standing can result in poor work, fraud or lost money. It’s always a risk, but becomes even more so at 3 a.m. when there is a major plumbing issue and a new contractor is hired because a preferred, long-standing vendor can’t be reached. Every day read more

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]]> single family property management, new vendor relationships are forged. But the problem, says RealPage Vendor Credentialing Vice President Tracy Castleman, is that vendors aren’t always fully vetted, which puts companies at risk. A non-credentialed vendor may refuse to take responsibility for poor workmanship or damage, and the management company may have no recourse. But a comprehensive vendor credentialing program can help property managers avoid being left holding the bag.

Failing to stay on top of vendors can be hazardous

Castleman has over 15 years of experience specializing in the multifamily industry as a licensed risk manager, insurance agent and claims adjuster. She said property management professionals often make mistakes when assembling their vendor entourage. Typically, they just don’t ask enough questions or stay on top of vendor relationships or the necessary paperwork that includes certifications and insurance. An informal poll in a recent Propertyware webcast, “Vendor Credentialing 101,” revealed that most respondents handle vendor credentialing internally, but 23 percent didn’t routinely check to verify their vendors’ insurance coverage. Castleman wasn’t surprised by either statistic. She said that while managing vendor relationships within the company may sound like a good idea, it’s risky and laborious. A third-party vendor credentialing partner can provide a safety net and save time. She also shared some of the most common mistakes regarding vendor credentialing. Once relationships are established, they tend to be forgotten and not reviewed. Additionally, communication usually falls through the cracks. “The number one thing I see is a risk elimination versus risk management mindset,” Castleman said. “You need to understand that being in business in and of itself carries a certain level of risk, so you need to manage that risk.” With RealPage® Vendor Credentialing, property managers can reduce risk and time through a cloud-based solution that delivers end-to-end vendor compliance and risk mitigation for single family and multifamily properties. Vendor credentialing is comprehensively managed, and more critical information about plumbers, electricians, HVAC professionals – anyone who performs a specific vendor service– is readily available for review. RealPage® Vendor Credentialing handles all the legwork and paperwork to ensure vendors meet company policies and standards.

Vendor credentialing protects owners, property managers

The platform, which is free and the largest database of its kind, is loaded with more than 135,000 vendors who specialize in property management. The benefits of vendor credentialing can make a marked difference for single family property operators. A big one is finding new owners. Castleman said that property management companies can differentiate themselves from competitors with vendor credentialing because prospective owners are more likely to onboard with a company that uses qualified and licensed vendors. The risk of using a non-credentialed company is decreased, which protects owners as well as the property management company. Also, an established network of qualified vendors provides property managers expanded resources for knowledge, particularly when it comes to compliance for insurance and other protections.

Removing manual processes saves time

Another key is that the vendor network is always maintained and up-to-date and manual processes are removed. This is more important than at first glance, Castleman says. In a competitive job market like today, companies run a greater risk of losing key players. When they’re gone, vendor relationships can fade away. Castleman says the right vendor credentialing package includes thorough vendor agreements, appropriate insurance, background screening, proper licensing and verification and verified W-9s. Verifying insurance endorsements is a big feature. A policy may appear to fully cover a property, but if it doesn’t have specific endorsements it can put the management company at a disadvantage. “If you are not collecting policy endorsements, that’s huge,” Castleman said. “That’s a red flag for me. It’s not enough to simply collect an endorsement, you need to evaluate the content of the endorsement to ensure that the coverage you are looking for is there and there isn’t an exclusion sitting there that will impact the coverage you are trying to achieve.” Background screening through criminal checks is also a must. “You’re sending vendors into people’s homes, and you need to make sure you get the appropriate level of screening,” she said.

Six keys to finding the right vendor credentialing solution

Castleman said finding the right vendors is possible through the right software solution. It’s important for it to offer these six things:
  1. A single point of reference
  2. The advantages of a powerful search engine that can narrow vendor choices
  3. Proof that vendors are licensed and insured
  4. Confirmation that vendors meet company requirements
  5. Ongoing vendor maintenance
  6. The ability to onboard quickly
The right vendor credentialing portal provides quick access to information, which allows properties to establish a verified network. And that can ultimately help grow doors. For more insights, watch the webcast.

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]]> Create LLC Rental Property https://www.propertyware.com/blog/create-llc-rental-property/ Mon, 02 Sep 2019 20:02:23 +0000 https://propertyware1.wpengine.com/?p=11293 If you own rental property in the United States, it’s a murky world. Sometimes, you buy in as a solo entrepreneur and are looking for ways to minimize your tax burden. Or, you’re a seasoned real estate investor that is concerned about protecting your greater portfolio from creditors and lawsuits. For a lot of these read more

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]]> Table of Contents

What is an LLC?

In short, an LLC stands for limited liability company which is a corporate structure that can insulate its owners from the liabilities and debts of the company. Whether you’re the owner of a few single-family rental properties or 1,000 multifamily units, an LLC can protect you from, well, personal liability. But that’s only one reason to create an LLC for rental property. Real Estate LLC Benefits If you’re reading this article, you know that as a property owner without legal protection your personal assets are on the line. If you own rental property and a tenant files a lawsuit against you, the lawsuit could bring any number of personal assets into the case. However, if you create a real estate LLC, then the only assets at stake are those owned by the corporation itself. In other words, your rental property is the only asset at stake and not your personal finances. That’s worth pursuing.

When Should a Property Owner Create an LLC?

In an ideal world, you would set up your LLC before you purchase the property you want to invest in. In that case, you won’t potentially have to file multiple quitclaim deeds to transfer property or ask lenders to consent to your transaction. Along the same vein, you’ll be able to decide ahead of time whether you want to set up a separate LLC for each property or combine all of your rentals into a single entity. Here are some other thoughts to consider:

Less Complicated Corporate Structure

When you’re setting up an LLC for real estate it’s important to know your own state’s laws, as that’s how LLCs are governed. However, it’s generally true that LLCs are a great option for property owners because they’re less complicated to manage than a C or S Corporation while offering significantly greater legal protection than a sole proprietorship.

Flexible Ownership

LLC owners are referred to as “members”, and ownership can include one member or multiple members as required by your circumstances. There is no upper limit to the number of members.

Pass-Through Taxation

If there were an “LLC For Dummies” book (hint: there is), it would definitely mention pass-through taxation. One thing that is unique is that all of the profits and losses of the LLC “pass-through” the business, going to directly to the LLC owners/members who report this information on their personal tax returns. What this taxation rule means is that the profits of the business are not taxed before being distributed thereby avoiding the double taxation consideration of a C or S-Corp. Since each individual member of the limited liability company must report as an individual, it protects the real estate entity from additional tax consequences. There are still additional tax considerations that will vary depending on if you’re considered an active or passive member of the LLC, so it’s highly recommended to consult your tax advisor with your specific situation. Additional Resources: Are LLC members subject to self-employment tax? Tax Court Finds No Self-Employment Tax For Passive LLC Member For more details about general LLC taxation, Nolo.com is a great resource.

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How To Create Your Real Estate LLC

Rental Property LLC Operating Agreement You can create your limited liability company with a few easy steps. Step 1: Consult a CPA and/or Attorney While setting up an LLC is a fairly straightforward process, there can be a number of considerations that vary depending on your personal circumstances. These include whether you’re going to be an active or passive member of the LLC, if you have employees or plan on hiring in the first year, if a separate LLC is recommended for each individual rental property in your portfolio (sometimes referred to as a special purpose entity or bankruptcy-remote entity), etc. A CPA or Attorney can assess your individual business and guide you as to the best course of action. Step 2: Draw Up The Paperwork A lawyer can also help you draw up the Articles of Organization and Operating Agreement for a reasonable fee, but you can also do it yourself for around $150 + state filing fees by using services like Launch by Legalshield or LegalZoom. You’ll want to make sure you’ve made some decisions when you file such as:
  • Your planned procedures for adding a new member or transferring property into your corporation in the future
  • Filing your property as a capital asset which means recording the market value of your property or properties as well as any mortgage information.
Step 3: File your LLC Paperwork With Your State’s Secretary of State Office Your state will have its own paperwork and forms for you to complete to register your LLC. Some allow you to file online, and others still require mailing it all in. Either way, you’ll pay an average filing fee of approximately $100 depending on your state when you submit your paperwork. Additional Reading: LLC Annual Fees by State You will also need to designate a Registered Agent which is an individual that resides in the state where your Limited Liability Company is formed and has a physical street address who can accept important legal notices such as correspondence from the Secretary of State’s office, service of process notices, tax documents, a notice of a lawsuit and more. While you can pay someone to act as your Registered Agent, any member of the LLC can act as the Registered Agent as long as they meet the criteria above.

How do I Transfer Deeds to an LLC?

A stack of LLC Paperwork sitting on a white desk It’s a fairly simple process to transfer deeds to an LLC. Step 1: Find your forms You can do an internet search or go to your county recorder’s office to get your forms. As these forms vary from state to state, you’ll want to double-check the deed form you’re using is specific to your state. Step 2: Figure out which deed you have There are two types of deeds: Warranty deed — this deed is the most likely one you received when you purchased your property. It should include a guarantee that the title is good and free of any interests or claims by a third party. Quitclaim deed — this type of deed doesn’t guarantee your property title is good or proves ownership. This type of deed only states that you are passing interest you may have in the property to the LLC. There is disagreement among experts as to the best deed to use — there are benefits to quitclaim deeds and warranty deeds but either can be used to transfer a real estate title to your LLC. Step 3: Fill Out Your Forms Whether you choose a warranty or quitclaim deed, you will be considered the grantor and the LLC is the grantee of the company. Double-check that all the names are correct and always use the full legal name of your limited liability company. For all questions about how to do this process, consult your county recorder for individual help for all the considerations you’ll need for the deed to be deemed valid. Step 4: Sign It Over As grantor, you will need to provide your signature at the time of transfer. An important note: some states require you sign in front of a witness or a notary, and some states also require a grantee so someone will also need to sign on behalf of your newly-formed real estate corporation for it to transfer. Step 5: Record It Once all the paperwork has been created, you’ll need to record the deed so that there’s a public record of the property transfer into your LLC. You can either submit to your local registrar or any other agency that handles real estate records in your city or county, depending on where you live. Step 6: Update Your Lease An important next step is to change all your leases to reflect that the new landlord is the limited liability company, not you, so that you can take advantage of all the protections now afforded you. Communicate to your tenants that they need to pay rent to the company, not to your personal name. And be sure always to deposit your rent payments into your separate LLC bank account. These steps when you transfer will help protect your assets from personal liability should something go wrong. A simple name transfer can save you a lot of headaches.

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What If The Rental Property Has a Mortgage?

If your rental property has a mortgage, contact your lender before you set up your LLC. Let the company know that you want to create a limited liability company to manage your rental property. Most residential mortgages contain a “due on sale” clause that prevents ownership from being transferred without written permission from the lender. If you can make arrangements to buy out your mortgage, that could be a good option. You could clear the titles and transfer to your LLC more seamlessly. If that is not possible, you may still make the transfer but could be looking at paying some closing costs as well as typically higher interest rates. We do recommend asking a lawyer in your state about ways to go about liability protections depending on whether you purchased the property as a residential property that will then be transferred to commercial use.

Is There An Alternative To Setting Up A Real Estate LLC?

Despite the myriad of benefits that a property owner can realize by setting up a Limited Liability Company, some people seek alternatives due to the costs and ongoing reporting requirements. In this case, some investors have chosen to purchase an umbrella policy instead. While this can be a more cost-effective approach to asset protection in the short term, these insurance policies contain exclusions, carve-outs and liability limits which can still leave a property owner exposed to significant risk and are generally not recommended as the sole form of asset protection. Learn More: Propertyware’s Asset Protection Plan Puts a Safety Net Under Your Assets There are so many benefits to creating a limited liability company for your rental property. Since protecting your investment is such an important goal in being a property owner, creating an LLC can help you reach that goal and protect you and your income from liability. Be sure to follow our provided steps and contact all the appropriate state resources, and you’ll be well on your way! Additional Reading: How To Start A Property Management Company Reducing Risk and Saving Time Through Vendor Credentialing While every attempt has been made to provide accurate and up-to-date information, this article should not be taken as legal or tax advice. Please consult a qualified legal or tax advisor to discuss your specific situation.

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