Property Management Industry Trends – Propertyware

How an Open API Unlocks the True Potential of Single-Family Property Management Technology

Anthony Maiella — Tue, 21 Nov 2023 23:00:00 +0000

By: Laurie Mega No matter how hard a single property management technology solution tries, it can rarely solve every single pain point for every single property manager out of the box. There are always workarounds to capture information left out of the system, or to set up workflows unique to your business. This is particularly true for single-family property managers, who may be dealing with multiple owners of one-off properties, or HOAs with unique rules and regulations. Even when a software solution is as customizable as Propertyware, there still may be a few aspects of your business you’re still using other programs to run. But what if you could pull information from those programs into your property management software, or even push information out to spreadsheets or other programs? If your property management software features an open API (like Propertyware), that’s exactly what you can do. It’s customization on top of customization. And here’s how it can make you a more efficient and more profitable property management business. And if you really want to do a deep dive into open API’s check out our guide: Your Business, Your Rules.

What Is an Open API?

API stands for application programming interface. It’s a set of rules that determine how one program can communicate and interact with other systems and applications. When a particular solution or piece of technology in property management includes an open API, it allows you to create a two-way data connection with other programs. Think of an API as a waiter in a restaurant. The customer (outside app) can request specific data from the kitchen (the property management software) off of the menu. The waiter is the one that then fulfills the request and serves up the data. It’s also important to note that you’ll also need a middleware solution that sits between both pieces of software to connect and route the data as you intend. Most property management technology allows only a one-way data connection, which means you can pull data out of the system, but not put it in. With Propertyware, however, you can set up that two-way exchange, allowing you to customize your processes even further. With it, you can connect just about anything, including

Enterprise accounting software
CRM programs
Digital marketing tools
Outside ticketing systems
Vendor software

There’s no limit to the possibilities.

How Can Property Management Technology with Open API Help Me?

There are myriad ways to harness the power of an open API for your property management business and the way you use property management apps. Because, really, all you’re doing is getting your software solution and your other apps and spreadsheets in the same room to talk. What they talk about is up to you—based on what the open API allows. Here are just a few ways some property managers have used an open API to streamline processes, improve efficiency, cut costs, and increase revenue.

Manage Vendors Across Your Business

You may have preferred vendors for all of your properties. But if your properties are located across cities, counties, or even states, you probably have a mixed bag of local vendors serving the needs of your tenants. Allowing vendors to integrate their digital solutions with yours makes it a lot easier to track and manage tasks, projects, and billing. Vendors can see and respond to work orders, enter labor times, and submit invoices, all of which will be pulled into your property management tool or “system of record.”

Turning Property Management Technology Into Your System of Record

Most property management apps come with a set of analytics that help you track processes, forecast budgets, and make informed decisions for your business. For example, digital marketing tools will show you how many people viewed and clicked on a post. Meanwhile, you may have a communication app for employees that gives you analytics on engagement. Meanwhile, billing, shipping, and service information are all saved in those multiple apps, as well. Logging into all those accounts and keeping all those metrics, dates, and payments straight is a time suck, either for you or for someone on your team. By integrating your property management apps into one tool, you can keep track of everything in one place, turning your property management tool into a more complete system of record that makes it easy to view and report important information. For example, Propertyware can integrate with Hubspot for marketing, as well as with services such as Second Nature, a filter subscription service for HVAC and refrigerators. Propertyware can store subscription dates, payments, and shipping confirmations, making it easy for property managers to track filter replacement on each of their properties. For more on API integration, check out our guide: The Power of a Customizable and Open Property Management System.

Customize Processes for Efficiency and Profitability

Most technology in property management already allows you to automate much of the business of being a property manager. Online billing and payments allow tenants to complete all of their transactions online. Listing and syndication become a simple matter of uploading a listing and pushing a button to get it out to several channels. Lead tracking all happens within the system, too. But for automated processes outside the system, for digital marketing or even HOA meetings, working through an open API can cut down on time, and even free up staff for other tasks. One property manager pulled all of their outside apps. They can now log into Propertyware to access Hubspot for their CRM, and other go-to tools for their inspections and renter verifications. By using the API, they have reduced staffing costs. For example, inspections can now be run by one person instead of three.

Consolidated Communications Across Your Company

Property managers can use an open API to consolidate task management and communication internally, as well. Say you’re using Zendesk for calls and live chats with residents and owners. You can pull all of the call logs and chats into your property management software to keep a record of all interactions and help improve customer service. You can also keep track of tasks assigned in Asana, Trello, or other task management software solutions. For our property manager’s full story, check out our guide: 6 Business Goals Attained Through Customization.

The Power of an Open API Coupled with Customizable Property Management Technology

Not all property management tools are built the same. Many don’t have open API capabilities. Some don’t even allow you to customize within their tool. Since no two property management companies (and no two properties, for that matter) are alike, using an out-of-the-box technology in property management is problematic. It forces property managers to come up with work-arounds. They may look to other software solutions, or even to (gasp) spreadsheets. That can create redundancies in work or risky data-entry situations. Propertyware, on the other hand, allows property managers to customize their own tool and take advantage of their open API. If you already use Propertyware, you know how flexible it is. In our customization guide, we talked to property managers who had improved efficiency, reduced staff, and even added revenue streams. Here are just a few examples:

One property manager set up custom workflows for every process in her business. Staff are alerted of upcoming events in each workflow through a color-coded system: green for on time, yellow for upcoming, and red for overdue.
Another property manager added custom fields to track pets at each property. Pet fees and penalty fees could then be applied as necessary.
Property managers have also set up custom tracking for leases and applications, allowing them to split tasks off to overseas staff. One property manager has even moved his entire staff overseas by setting up custom tracking reports.

With the ability to customize so much, is there still room for an open API? Absolutely. Once you are getting everything you can out of Propertyware, you can take it even further to cover tasks property management tools don’t even cover. Track and forecast your marketing strategy without having to log into your digital marketing apps. Budget for the upcoming year by looking at numbers from your accounting software and your rental rates at the same time. We’ve said it before and we’ll say it again. The possibilities are endless. It’s up to you to determine your business’s goals and then ask “How can customization and an open API help me reach those goals?”

The post How an Open API Unlocks the True Potential of Single-Family Property Management Technology appeared first on Propertyware.

Single-Family Property Management Service Trends for 2022

Jake Belding — Thu, 06 Jan 2022 20:28:21 +0000

By: Laurie Mega According to the 2022 State of the Property Management Industry Report, the number of renters living in single-family rentals has risen steadily for the last several years. And further fueled by the pandemic, it’s no secret or surprise. This trend, combined with changes brought about by the pandemic, like the demand for rentals with more space in less-populated locales and owners becoming more investment-minded, has had a strong impact on manager-owner and manager-resident relationships. Owners look to property managers to help them navigate myriad new laws and restrictions, while calming fears of income loss from delinquent rents. Meanwhile, property managers are working more closely with residents to keep them in their units despite income loss. As the economy slowly recovers, many of the management service trends that appeared in the last two years most likely won’t fade with the headlines. Single-family property managers we surveyed for the Property Management Industry Report agreed. “Even when the pandemic is over, I think our client base will not be willing to switch back to ‘normal.’ They will expect us to continue to provide the same online and convenient services,” commented one property manager based in Oregon. Here are some of the most important rental owner and resident service trends property managers across the country expect to stick with us in 2022.

On the Owner Side

Rental owners, overall, looked to their property managers to take on a larger role, beyond rent collection and maintenance. In response, property managers turned to tech to help them customize and centralize management.

Investment Services

Where once many single-family rental owners may have been Accidental Landlords—landlords that have come to own their property unexpectedly, such as through inheritance—now many are looking at rentals as an investment business. Since 2018, the number of investors in our survey has increased from 67 to 71 percent. Institutional investors are also starting to take notice and are quickly entering the space. As a result, owners put more value on property managers who can do more than maintain properties and handle rent. They want firms with local market expertise who know where the best investment opportunities are. If they’re looking to expand outside of their current market, they want a property manager who can do the market research for them. They also need more reporting on their current properties to understand how they’re performing in the context of the broader local market.. Their reporting requirements are becoming increasingly more granular and market-focused. One owner from our survey puts it this way: “We work with a management company who creates quarterly presentations about the region we own property in. This has been super helpful to provide insight into areas to purchase rentals in.” Property managers should also be able to advise their clients on improvements and amenities that will add value to their current properties, allowing them to attract their target residents and increase rent.These can include private yards and extra space for pet owners, or even a whole host of other amenities that are piquing lifestyle renters’ interest, especially in build-to-rent communities.

Legal Services

“[The pandemic has] highlighted the need for knowledge around current and legislative events in their local markets,” a property manager in Denver told us. “Landlords and tenants need to know their current rights, and there are so many that don’t.” But eviction moratoria and local restrictions to curb COVID are just the latest legal concern for owners. In recent years the revival of rent control in some major cities have also gotten the attention of rental investors. More recently, good cause eviction laws, which would limit the reasons an owner could evict a resident, have gained some traction in places such as New York. Owners are looking for property managers to stay on top of these laws and restrictions as they arise and help them navigate the compliance issues that accompany them. If they are looking to expand their portfolio, owners may want property managers to help them steer clear of markets where restrictions would make it difficult for owners to turn a profit. While consulting legal professionals is almost always the best course of action, property managers should still be familiar with these trends so they can anticipate clients’ requests and refer them to the right professionals in their network.

An Increased Role as Adviser

Because there are so many new issues to consider with rental investments, owners want their property managers to advise them, not only on legal and investment matters, but also on creating value for current and prospective residents, as well as on effective marketing strategies for their properties. According to our report, rental owners have been grateful for property managers that are both personable and provide expertise in their communities on regulatory changes, property finances, and local market conditions. They’re also looking for an attention to detail when it comes to managing maintenance and residents.

Proptech for Owners

Digital property management tools were already trending before the pandemic, but the need for enhanced reporting and more communication without in-person contact further drove property managers to adopt technologies that made this easier. Owner portals, for example, give property managers a place to store all client-related documents, provide real-time analytics on properties, and communicate with owners more regularly without having to pick up the phone. Property managers can keep tabs on vacancy times, turnover rates, and any other statistics important to them and their clients, making these portals even more effective than many traditional ways of communicating with owners. With a property management software solution like Propertyware, property managers can even set up customized dashboards for owners. That way, owners see only what they need to see to make the best decisions for their investments.

On the Resident Side

In many cases, relationships between residents and property managers grew stronger over the last two years. Meanwhile, property managers worked closely with residents who couldn’t afford rent after a job loss or reduction of hours.

Maintenance and Repairs

Residents now expect more immediate results when they request maintenance and repairs. The pandemic has also reinforced this trend as renters, who were home much more, requested maintenance and repairs more often, and expected much more communication from their property managers. The challenge for property managers moving forward will be labor shortages and supply chain issues, two problems that currently plague many sectors of the U.S. economy. On top of that, the increased price of certain supplies and materials, which economists predict will continue into 2022 and beyond, can lead to some tough decisions about how to handle those expenses and to what extent they’ll be reflected in management fees.

Virtual Tours

In-person tours of vacant units became impossible for many property managers in 2020. So, they turned to a service trend that was already growing before the pandemic: virtual tours. Now that people are used to them, they’re likely not going away. A 2020 survey by Zumper and Matterport, for example, found that 95 percent of renters were more likely to rent a property listed with a 3D tour. As you well know, virtual tours allow prospective residents to conveniently screen properties before they contact property managers, saving themselves time from visiting units that don’t meet their needs. Property managers, in turn, save the time it would take to show the unit to someone who isn’t the right fit. Virtual tours also give prospective residents who are relocating the opportunity to see properties without making a big trip.

Proptech for Residents

Younger generations of renters already expect to conduct most of their business via mobile app. They want to be able to shop and apply for rentals, request maintenance, communicate with property managers, and make payments on the go. In fact, our survey found that online payments, email and text communications, electronic rental applications and lease signing, and online maintenance requests are now considered the industry standard among today’s property managers, renters, and rental owners. Couple that with the ongoing need for contactless interactions, and it’s no wonder property managers are turning to technology to provide more comprehensive service to their residents. Software solutions also allow property managers to keep tabs on their properties, store important documents, and set up customized and automated processes, such as responses to applications, welcome packet delivery, and lease renewals. Propertyware is one such solution. It allows property managers to customize their workflows, communicate on the go with residents and vendors, and even pull outside vendors into their process. Everything about single-family property management has changed in the last two years, from the demographics of both owners and residents to the services they require. If you haven’t already, tune into what your clients and renters are looking for and make the changes that will matter most for your own business.

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Smart Home Tech for Single-Family Rentals

Mary Rose Hogaza — Wed, 23 Sep 2020 06:05:17 +0000

By: Laurie Mega These days, it seems that everything is “smart,” from toothbrushes to diapers (yes, MIT has invented the smart diaper). It’s questionable whether we need some of this tech. But smart tech in homes actually makes a lot of sense. It can increase water and energy efficiency while reducing costs. Smart security systems add another layer of protection to properties. If your business runs on a build-to-rent model, it’s worth considering smart tech and smart home hubs in new builds, as well as in updates of your current properties. If you are a management-only firm, it might be worth discussing smart tech upgrades with owners. With everything out there, it’s tough to know where to start. So, we’ve rounded up some of our favorite ways to add smart tech to single family properties.

The Smart Tech Hub

Before we talk about individual smart tech options, we first have to start with the hub. A voice-activated device or a smart home hub will be the central control for all of the smart tech you install. After all, the convenience factor is completely lost if you and your tenants have to download a bunch of apps and remember a whole lot of credentials to get anything to work. Most smart devices work with Google Home, Siri, and Alexa. You can also install a panel in the home or a central app on a device to bring everything together.

In the Kitchen

The kitchen is a busy place. When you’re in a full meal-prep mode, it can feel like you need more than two hands. And how often do you reach for the faucet or a recipe book and realize your hands are covered in something? If you’re looking to attract tenants, smart tech in the kitchen, from voice-activated appliances to AI tech in the fridge is a great place to start.

Smart Faucets

Faucets, particularly those in the bathroom, are one of the germiest spots in a home. So, a touchless faucet is an attractive feature. But smart faucets are more than just touchless. They respond to voice commands through Alexa, Google Home, or Siri. You can ask it to dispense a particular amount of water, such as 3 cups or 12 ounces, and some even allow you to save certain amounts for future use. So, when you say “teapot” you’ll always get eight ounces of water, for instance. Smart faucets let users review their water consumption, as well.

Appliances

You can pretty much make any kitchen appliance smart, and they all run on voice command from your home device. For mealtime, there are microwaves that scan barcodes for cooking instructions and stoves you can send recipes to and preheat on your way home. Refrigerators do everything from keeping a grocery list to tell you the weather. And smart dishwashers can be voice- or app-controlled. They automatically adjust water and temperature to the size of the load, as well, saving water and energy. All of these appliances can be a major selling point for tenants who are looking for hands-free convenience in the kitchen.

Heating and HVAC

Converting heating and HVAC to smart devices is a big win for property managers and owners who are looking for an easy way to cut heating and cooling costs. They’re also attractive to tenants, who can control their climate more easily.

Thermostats

Smart thermostats are incredibly useful devices. They will run on pre-programmed temperature settings, like most thermostats, but they’ll also use motion detectors and AI to learn the daily patterns of tenants and adjust accordingly. This is a big advantage over programmable thermostats since most people don’t bother to program them in the first place. If your units have more than one zone, the thermostats will “talk” to one another to keep a consistent temperature throughout the house. Smart thermostats let you monitor your energy consumption, as well. And you can adjust temperatures from afar. Let’s say your tenant goes on vacation for a few weeks and an unexpected cold snap strikes the region. Rather than worry about broken pipes, your tenant can raise the temperature in their home from wherever they are.

Smart Window Shades

You might wonder why we put window shades in this category. It’s because the right window shades can reduce heat loss through windows by 40 percent and heat gain through windows by 80 percent, according to Energy.gov. Smart shades can be raised or lowered on a schedule or through an app, to maximize the amount of heat gained and minimize the heat lost through your windows. You can also use voice commands to raise and lower blinds, handy if your tenant gets out of the shower and realizes the blinds are still up.

Doors and Locks

Ensure the safety of your properties and your tenants with the use of smart locks and garage doors. Here’s how.

Smart Locks

Smart locks have a number of benefits for both tenants and property managers. First, they allow touchless entry, which is garnering more attention in the age of COVID-19. Viruses can live on doorknobs for up to 24 hours, and bacteria such as MRSA can live even longer – up to a few weeks. Smart locks also allow tenants to lock and unlock doors remotely. So, if they forgot to lock the door in their rush to leave, they can do it from anywhere. They can also open the door for children coming home from school or even members of your staff coming to complete maintenance requests. Finally, smart locks allow you to show vacant properties without having to be there. As lockdown protocols constantly change throughout the U.S., many real estate agents and property managers are conducting self-showings to maintain social distancing. A scheduling app and smart lock will allow you to open and close the property at certain times so prospective tenants can access to your vacant units.

Garage Door

How many times have you left the house and wondered if you closed the garage door? A smart garage door eliminates that worry. Amazon even has a garage delivery service called Amazon Key. Tenants can take delivery of their packages in a safe, contactless way. And if they’re not home, delivery personnel can leave packages in the garage instead of on the front steps, where they can be stolen.

Lighting and Electrical

Because smart bulbs are more energy-efficient and the ability to schedule lights means they’re only on when they need to be, your tenants can save money. It’s worth noting that some of these smart devices do draw some wattage even when not in use, but the amount is negligible, only about a watt.

Interior and Exterior Lights

Lights have been programmable for ages, and solar tech made it easy to control outdoor lights without having to worry about seasonal changes. But smart lights take lighting technology even further. Smart lights can be controlled through an app or through voice command with a home device. If a tenant forgets to turn the lights off, they can do it from anywhere. If they’re coming home late at night, they can turn on the lights before they arrive. If you install smart lightbulbs, though, tenants can program different lighting “moods.” For instance, they can ask their home device to set the lights to “work mode” for brighter light or “evening mode” for more subdued lighting that uses less energy. Smart lightbulbs even change color, which can be fun for kids in the house. Smart lightbulbs are LED, so they use only 20 to 25 percent of the energy traditional bulbs do, and they last 15 to 25 times longer. And if a tenant can control all of their lights with one command, they may be more likely to turn them on and off only when they need them, saving money. Property managers can use waterproof smart bulbs for exterior pathways, decks, and driveways.

Smart Plugs

There are two kinds of smart plugs. The first plug into existing sockets that allow you to turn regular electrical devices on and off using voice commands or an app. But they can do some other pretty cool things, too. Some can detect flooding in the home and can alert you when standing water hits their sensors. They can reduce wattage with certain appliances and can help you monitor energy consumption through an app. Smart outlets pretty much work the same way. They’re just more permanent.

Security

Of all the reasons to install smart tech, security is one of the top ones, according to the National Association of Realtors.

Smart Doorbells

Smart doorbells, like Amazon’s Ring, include a security camera and alerts that pop up on your phone when someone rings the doorbell. Even if they don’t, the motion detector will alert you to movement outside your door. You can also talk to someone at the door through a two-way communication system, and you can communicate with other Ring users in your area through message boards.

Smart Security Cameras

Smart security cameras work much the same way as Ring and other smart doorbells. You can see what’s happening on your properties at any time from your phone. A word of caution, however. You cannot violate the privacy of your tenants by using the cameras to look in on them whenever you like. There are so many other smart home devices we haven’t even mentioned here. There are smart sprinklers that adjust to temperature and rainfall. Smart fireplaces can be controlled remotely and come with safety detectors. There are even WiFi-enabled smart ceiling fans. The kind of tech you choose all depends on what you, your tenants, and your owners are looking for. Is it security? Energy efficiency? Convenience? Maybe all three? Survey your tenants and work with your owners to determine the best kinds of smart tech for your properties.

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Rent Payment Options: Why Online Payments Will Now Dominate

Murphy McNutt — Tue, 23 Jun 2020 23:52:48 +0000

By Laurie Mega

Even before the coronavirus outbreak, rental payments were going through something of a revolution. The once ubiquitous check or money order has been giving way to more secure and immediate forms of payment, from credit cards to payment apps to online portals. There were several reasons for this, from sheer convenience to security, to the demand for mobile availability from millennials and Gen Z. The current pandemic is now the straw that broke the camel’s back. As property managers search for ways to keep their businesses running and their residents happy while practicing social distancing, mobile and electronic payment options are becoming a more appealing choice over paper checks, money orders, and cash that requires interactions with residents, bankers, and postal workers. So will online rent payments eliminate more traditional options? We think they just may.

The Pros and Cons of Traditional Rent Payment Options

Traditional rental payments are still popular, especially with certain demographics. Cash, Check, or Money Order In a 2014 study by the Federal Reserve Bank of Boston, the most recent data, 22 percent of American renters paid with cash, 43 percent paid with check, and 16 percent paid with a money order. In a 2017 survey, the FDIC found that 25 percent of Americans either don’t have a bank account or use financial services outside their bank account to make payments. And half of them said it was because they don’t have enough money to keep a minimum balance. Paying with cash or purchasing a money order are still go-to methods of paying the rent with low-income renters. Or they may pay through a walk-in payment system (WIPS) available at many chains or big box stores. With a WIPS, residents pay in cash at a participating store. The store then transfers the money directly to the property manager. For residents who do have bank accounts, money orders and certified or cashier’s checks have traditionally been preferable for both property managers and residents. Both cashier’s and certified checks are guaranteed by the bank that issues them, which means they won’t bounce. Money orders also guarantee funds. All of these methods are trackable, so there can be no dispute overpayment.

The Disadvantages of Traditional Payment Methods

All of these payment options may serve your residents best. But there are disadvantages for both residents and property managers with each of these. First, cash is hard to trace. Even with banking statements and deposit slips, it’s easy to lose track of cash payments, especially if you’re getting the same cash amount for multiple tenants. There’s no name or check number attached to cash, after all. Personal checks can bounce. And certified or cashier’s checks can be a hassle to obtain and cost your residents extra money (up to $10 per check). Money orders, too, cost a little bit extra (up to $5 per order), and as with WIPS, your residents have to go to a physical location to get one.

Traditional Payments and COVID-19

And that’s the final nail in the coffin for payments of these types. They have to be made in person or sent through either a store, a bank, or the mail. Experts now fear a second virus spike could happen in the fall and winter of this year. And a vaccine will not be available to the public for at least a year, by researchers’ best estimates. That means social distancing will remain the norm for some time to come. The fewer residents and property managers have to come in contact with each other, the better. And rent payments is one area where property managers can proactively reduce infection risk.

Electronic Payment Options

Electronic payment options eliminate the need for contact. But there are some facts.

Credit or Debit Card

In April 2020, credit card payments for rent were up 30 percent over the previous month as people avoided going out for even the simplest walk to the mailbox. Credit and debit card payments are indeed becoming a more popular way to pay for rent. Not only is it convenient, but residents with cashback or points cards can benefit from a large, regular charge to their card.

Wire Transfer

Some property managers allow wire transfers, but this isn’t really a good idea. In order for a wire transfer to happen, you would have to share account and bank routing information with your residents.

Online Payment

Millennials now make up a large portion of the rental market, and their preference for online and mobile convenience is well known. At the same time, Gen Z, who have never lived in a world without the internet, are starting to enter the rental market. These new populations, coupled with the new need to remain socially distant, are driving a surge in popularity with both payment apps and online portals. There are a whole host of payment apps you can use to charge and collect rent money from tenants, but you should really use a payments platform integrated with your property management system so that you don’t have to rekey entries, eliminating potential mistakes. Pro Tip: If you use a payment app for rent, spell out in the lease which app you use, what the service charge is, and how that affects the rent. You may even want to look into an online portal for charging and accepting rent. Online solutions such as Propertyware handle rent payments seamlessly while providing a whole host of other services for residents, owners, and property managers. You can use them to sign and store lease agreements and other documents, track work orders, send messages to residents, and the PMC can even interact with owners through their own portal. There will still be resident populations who will use more traditional forms of rent payment. But as younger renters flood the market and the current pandemic continues to act as a catalyst for change, online payments just may replace check, cash, and money orders as the principal way residents pay for rent.

The post Rent Payment Options: Why Online Payments Will Now Dominate appeared first on Propertyware.

How Single Family Professionals Can Grow Doors and Increase Revenue

Mary Rose Hogaza — Tue, 08 Oct 2019 21:11:54 +0000

Through a series of informative events scheduled this fall from Tampa Bay to Salt Lake City, property management operators can learn to grow doors, increase revenue and optimize profit with valuable insights. The Propertyware^® Business Insights & Growth Show is a lunch & learn program that helps operators increase business regardless of their property management system. Propertyware experts share best practices and information, and attendees receive instructor-led training to learn how to grow doors or increase revenue per door. In addition, attendees can network with peers, get product updates and learn best practices in the industry. Each of the events is free and features fresh approaches to effective property management in single family real estate. We’ll even share an actionable blueprint for an end-to-end planning process including settings and customizations.

What attendees are saying

Long-time Propertyware user Kathy Scott, who operates 600 doors in College Station, Texas, said she discovered greater potential for using Propertyware software at recent event in Dallas. During a discussion on rent renewals, Scott learned to use pieces of the process in other facets of managing her assets. “I’m amazed at how I can continue to learn different aspects of the software, how I can put it to work even more for me,” she said. “It was definitely worth it.” The four-hour shows start with networking, followed by a lunch that includes introductions and updates. The afternoon portion of the program includes interactive training exercises and a discussion on best practices. Each show wraps up with questions and answers. “Don’t miss it,” says Karen Dunn, who operates 100 doors in Carrollton, Texas. “You will be pleased that you were there.”

Upcoming events

Reservations are required. Remember, the event is free and perfect for property managers and owners! You should always strive to attend industry events if you want to grow your property management business. For more details and a peek at the schedule, check our Business Insights & Growth Shows page or visit our industry events page.

The post How Single Family Professionals Can Grow Doors and Increase Revenue appeared first on Propertyware.

Single Family Market Embracing Build-to-Rent Model

Breanna Kerrigan — Thu, 30 May 2019 21:47:56 +0000

That saying, “If you build it they will come,” is resonating throughout the real estate industry, although it’s extending far beyond the cornfields of Iowa. The build-to-rent (B2R) concept that has caught fire in Europe is becoming the new wave in real estate and edging into the U.S. single-family space. Homes are being purpose-built and professionally managed specifically for renters in and out of city centers. The concept has garnered the attention of large institutional investors, including pension and insurance funds.

Build-to-Rent

B2R is a collaboration of developers, construction companies, investors and management companies to build single-family housing on a large scale, much the same way as it’s done in multifamily housing. But single-family investors and developers are taking the concept to a new level, building single rental homes or even entire subdivisions with similar flavor as highly amenitized and managed apartment communities. Developers and owners can save significantly on building costs and earn greater returns by constructing a whole neighborhood at once, as opposed to building one-offs or buying properties in other areas and converting them to rent houses. By contracting with a single general contractor, risk isn’t passed on to owners until the property receives a certificate of occupancy. Also, renters are more likely to stay longer in a brand-new home compared to one that’s been lived in, which reduces turn costs for the management company, say single-family industry experts. And a new home with a new tenant is more desirable when courting long-term investors.

Opportunities for single-family

It’s becoming the industry’s most exciting opportunity for single-family rental investors and property management companies to grow doors and expand their portfolios whether they build one at a time or enmasse. Subdivisions, which can include 50 or more homes, require large sums of capital versus buying existing properties are building a handful here and there, and experts say the potential for revenue generation, diversification and growth is good at any size. “We look for subdivisions typically over 100 units, so we’re looking at a minimum $25 million investment,” said Jay Byce, senior vice president and co-founder of ResiBuilt, which plans to deliver 400 homes this year and 800 next. Byce was one of four panelists who offered insight into B2R , which in “Build to Rent: Everything You Need to Know,” a webcast hosted by Propertyware Vice President, Single Family Inaas Arabi. Dennis Cisterna, founder and CEO of Guardian Residential; Bruce McNeilage, co-founder and CEO of Kinlock Partners; and Corvest Finance Vice President, Originations Stephanie Casper each offered how to make B2R a viable business for single family rental owners. Watch webcast now: Build-to-Rent: Everything You Need to Know

Demand for B2R grows

The demographic tailwinds that support renting as a lifestyle plus demand for entry-level housing makes the business model work, panelists said. Casper has witnessed demand for B2R financing grow since joining Corvest four years ago. Corvest, a private lender that specifically provides loans to real estate investors, created a product that finances stabilization and construction of B2R properties and the take-out financing via term loans to meet customer needs. “During that time we saw the need to tweak our existing loan programs to solve some of the financing needs specific to a build-to-rent model,” she said. “That included tweaks to leverage levels on our short-term side as well as underwriting adjustments we can make that are more specific to term loans that are for newly built homes.” Investment costs are more manageable building communities at one time. While the homes are not necessarily of a cookie-cutter mold they share some of the efficiencies of building in bulk. Cisterna said that many of the materials are the same, including countertops, appliances and flooring. Homes often get built quicker because there are no special materials that have to be ordered from one home to the next and scheduling the work is easier. “When you’re looking from speed perspective, that’s great,” he said. “All of your subcontractors and vendors are able to work much more efficiently. In addition you have cost savings because of a bigger volume discount, and you don’t have change orders. For that perspective it’s absolutely incredible.”

Community perks

With large investments come large communities that inevitably take on more of a multifamily appeal with a design for the complete resident lifestyle in mind, Byce said. Neighborhoods are filled out with some of the same community perks, like swimming pools and a gathering areas yoga classes or wine tastings. Onsite staff manages resident needs and maintenance. “At that point it becomes more like a Class A apartment complex,” he said. “That’s why we think it’s important to amenitize the community with swimming and tennis, provide onsite staff that not only handles maintenance but weekly wine tastings and yoga. When we’re able to do that we see tremendous leasing velocity, upwards of 25-30 units a month in some subdivisions we’ve looked at.” In most cases new properties command greater premiums − some generate upwards of $300 more per month for a basement − than their aged counterparts. Typically, tenants are willing to pay $50 to $100 more for the privilege of being the first to live in the home. McNeilage said owners are building the homes with turns in mind, even though there are typically fewer than older properties. Kitchens usually have granite countertops and vinyl floors are a no-no. Carpeted rooms are limited to stories above the first floor and the master bath shower has a door to prevent leaking. “I think the main thing is the finishes,” McNeilage said. “If you’re planning to sell to them or keep the product, you really want to build product where it minimizes wear and tear. The less turns for us as owners and making it easy to turn that house when the next tenants come are very important when building house to rent versus for sale.”

B2R gains traction

Kinlock Partners believes B2R will get further traction and become a larger piece of the single-family rental space. New household formations driven by millennials who are settling down is one contributing factor. Another is that inventory of available homes is insufficient for entry level buyers. Byce notes that a shortage of affordable homes exists because many that were built in recent years sold for $400,000 to $500,000 or more. Such properties may be out of reach for new families because of the high rents that come along with them. “There’s been a tremendous undersupply of new houses in entry level price point,” he said. “Everybody is kind of scratching their head and trying to figure out how to efficiently bring more supply on at an affordable price point.” Large national home builders struggle to meet lower-end price points because of huge operating costs, an advantage that Byce says small single-family rental operators can gain through B2R. “We are looking at this as a very big opportunity to help small investors grow,” he said. “The big rental companies only own 300,000 or so homes compared to five million rental houses across the U.S. We think the entry level price point has been so underserved and it’s going to be difficult for us to catch up over the next three or four years.” When panelists were asked to offer one tip to single-family rental investors wanting to get into the B2R, McNeilage offered up the old real estate adage of location, location, location. And, “schools, schools, schools.” To hear what other panelists suggested, watch the webcast.

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Is Single Family Real Estate Still a Good Investment? Signs Say Yes.

Leah Mendes — Mon, 18 Mar 2019 21:41:08 +0000

Most of us in the property management field already know that, despite occasional risks and business challenges, single-family rentals are good investments. But with the market uncertainties that are now appearing, are these still the right assets to have in your portfolio? The sentiment of high-net-worth investors suggests a resounding “yes.” According to a recent survey by financial services company Millennium Trust, a staggering 90% of people are inclined to invest in alternative assets of which real estate is the top choice. Single-family rental properties are at the top of real estate and of interest to a whopping 73% of high-net-worth real estate investors, as stated in the Millennium trust study. Some trends believed to be causing the interest (and continued growth) include downsizing baby boomers, as well as millennials choosing to rent longer so they can keep their options open. What does the future hold? Some experts believe, in the long term, 13 million additional homes will hit the market by the year 2030, adding to already existing 16 million assets. And in a recent US News and World Report article, Quinn Palomino, co-founder and principal at Virtua Partners in San Diego, believes that the near future is bright. In the article, Palomino states “demand is high, and supply is still constrained, particularly for entry-level housing. We anticipate rent increases will outpace the overall commercial real estate market, landing in the 5 to 7 percent range.” She also believes that single-family rentals will beat the stock market in 2019 due to low rates and low unemployment. The key is to take advantage of good market conditions—not just in the short-term, but to build your business and prepare it for the extended future. Make sure you have the right tools to help take your business to the next level, keeping owners and tenants happy along the way. Learn how Propertyware can help.

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How To Become a Property Manager

Brian Rakowski — Fri, 08 Feb 2019 21:49:18 +0000

If you have an interest in real estate and the drive to become a property manager, then starting your property management career will require some planning and perseverance on your part. While there are certainly a host of requirements to start and be successful in real estate and property management, it may not be as difficult as you think. Once you decide to take the plunge as a property manager, you’ll find your career choice to an interesting, challenging, and rewarding experience. There is an expected 4% growth in the $81B real estate management industry so if you think you have what it takes, following the steps below can help you put you on the path towards a satisfying career as a property manager. Table of Contents

What Is A Property Manager?
What Does A Property Manager Do?
Property Manager Qualifications
What Skills Do I Need?
Do Property Managers Need To Be Licensed?
Do Property Managers Need To Be Certified?
What Types Of Certifications Should I Consider?
How Much Do Property Managers Make?
How and Where Do I Start?

What Is A Property Manager?

A property manager (sometimes called a real estate manager) is a person or firm charged with the day-to-day management of a real estate property in exchange for a fee when the owner is unable to personally attend to such details or is not interested in doing so. As of 2018, there were estimated to be more than 270,000 Property Management companies in the US employing more than 815,000 property managers and other employees associated with real estate or property management. Property managers are focused on rental properties only and do not buy or sell real estate, that is solely the domain of a real estate agent or Realtor.

What Does A Property Manager Do?

Property managers are more than people that simply collect the rent for a landlord or make sure their apartment is renting out regularly. They wear many hats and take care of everything related to the property for the owners including:

Advertising the property for rent
Showing the property to prospective residents
Maintaining consistent and current communications with owners and residents via portals or email
Screening new applicants
Providing ongoing tenant customer service
Collecting rent and setting rental rates
Lease renewals and tenant retention
KPI and property status reporting
Move In/Move Out Inspections
Dealing with problem tenants
Managing the eviction process
Community maintenance
Coordinating maintenance & repairs with contractors (electricians, plumbers, HVAC, pest control, etc.)
Performs basic accounting duties
And can even act as a salesperson in some cases

[Learn More: Getting Started in Rental Property Management: Top 7 Considerations] As such, a manager can manage different types of properties for their clients, since Property Management can be broken into three main property types:

Residential/Multi-family.
Commercial/Industrial.
Retail/Flex Spaces.

What Are The Minimum Qualifications To Become a Property Manager?

In order to become a professional property manager, there are a handful of minimum qualifications that must be met. Unlike many other professions, the requirements are straightforward.

Must be 18 Years of Age or Older (some states require applicants to be at least 21 years old)
A High School Diploma or GED
Be a Legal US Citizen or Have Permanent Residency
Complete the Required Real Estate Pre-Licensing Coursework if Required by Your State
Pass Your State Real Estate Licensing Examination (most states require this)

[Additional Resource: Residential Property Manager Job Description Template]

What Skills Do Successful Property Managers Need?

Successful property managers are flexible and effective managers of their time and people, relying on their natural ability to communicate and achieve results in a dynamic environment. Some skills you’ll want to develop to be successful are:

Strong communication
Responsive customer service
Excellent organizational skills
Basic marketing skills

[Additional Reading: 5 Skills That All Property Managers Need]

Do Property Managers Need To Be Licensed?

Most state governments do require property managers to be licensed. In fact, only six states in the US do not require licensing for property management activities. However, as an entry-level employee, you will likely be working under the supervision of someone with either a real estate broker’s license or property manager’s license. Most states do not require a license for entry-level activities performed under supervision by a leasing agent. [Additional Reading: Service Animals vs Support Animals: The Definitive Guide To The ADA For Property Managers]

Do Property Managers Need To Be Certified?

While licenses are issued by your state government, certifications are issued by nationwide real estate and property management industry professional associations and trade organizations like NARPM® or IREM®. Property Managers are not required to be certified but it is advisable to pursue a few different designations like the NALP®, CAM®, CPM®, and MPM® as you progress in your career. You should also take advantage of your Property Management company’s training programs wherever possible, these are often free and an invaluable resource for someone new to the industry or even experienced managers. Not only will these programs give you the needed skills for your day-to-day tasks, but they may prove very useful once you seek further formal certifications.

What Types Of Certifications Should I Consider?

The first two certifications below (NALP & CAM) are likely the ones you’ll want to focus on early in your career, with the third (CPM) being a certification you’ll need to progress in your career. The last certification (MPM) is really the highest designation a manager can achieve and is usually attained to distinguish you from your competitors while being a helpful certification for starting your own Property Management Company.

1. National Apartment Leasing Professional (NALP)

A leasing professional is often the first people prospective renters meet and may be referred to as Assistant Property Managers. The National Apartment Leasing Professional (NALP) certification is intended to teach new property managers the skills they need to become more proficient and effective at their jobs. In order to obtain the NALP certification, all candidates must complete the following:

A minimum of 6 months of onsite property management experience in a leasing role.
- You can actually obtain your onsite property leasing experience while being enrolled in this course.
- You will be issued a provisional certificate until the time requirement has been met.
The successful completion of seven NALP courses which includes the Market Survey course for a course total of 25 credit hours.
Meet all other exam requirements within one year of enrolling in the course.

2. Certified Apartment Manager (CAM)

Once you’ve gained experience as a leasing professional managing properties and had time to learn other aspects of property management, you may want to consider the Certified Apartment Manager (CAM) certification. This certification is targeted at onsite managers who are often the only property managers apartment residents will deal with on a daily basis. You will be the onsite authority of your management company and the representative of the community owners and investors. In order to obtain the CAM certification, all candidates must complete the following:

A minimum of 12 months of onsite property management experience in a management role.
- You can actually obtain your onsite property management experience while being enrolled in this course.
- You will be issued a provisional certificate until the time requirement has been met.
The successful completion of all CAM courses which includes the course total of 40 credit hours.
Meet all other exam requirements within one year of enrolling in the course.

3. Certified Property Manager (CPM)

The Certified Property Manager (CPM) designation is the mark of distinction for property managers.

A minimum of 36 months of qualifying real estate management experience in a management role. You must have achieved 36 months of consecutive employment in real estate management before being enrolled in this course.
Hold a real estate license or verification that you are not required to hold one in your current position.
Meet all other exam requirements within one year of enrolling in the course
The candidate must meet the minimum of a managed portfolio of rental properties as follows;
- Residential: 200 units at 1-4 sites or 100 units at 5 or more sites.
- Commercial: 120,000 square feet at 1 site or 80,000 square feet at 2 or more sites.
- Industrial: 200,000 square feet at 1 or more sites.

The candidate must meet the minimum of a Functions Requirement for at least 19 of 36 activities and/or functions in order to qualify for credit towards the CPM certification. Top 10 activities or functions required;

Hire, manage, and evaluate site personnel and/or off-site property management staff or contracted real estate management firms, directly or through others.
Identify staffing requirements and develop, or approve, job descriptions and/or develop and monitor, or approve, human resource policies, training and development plans, and diversity outreach initiatives.
Identify, implement, and monitor, or approve, sustainable practices; including but not limited to energy use/conservation programs for the property.
Determine which items or services are to be purchased for the property, prepare specifications, solicit and evaluate bids for contract services, negotiate or approve contracts, and monitor contracts.
Oversee the operation of building systems, supervise employees or monitor contractors who perform routine maintenance and repair work, and/or oversee the planning and construction of tenant improvements and interior design.
Design, implement, and monitor or approve, routine, and preventive maintenance programs for the property.
Establish or maintain and enforce the property’s operating policies and procedures and occupancy/usage guidelines.
Establish, maintain, and monitor adherence to, or approve the property’s record-keeping system.
Identify, analyze, and implement, or approve, capital improvement or replacement programs, including but not limited to maintenance or remodeling programs, resident/tenant improvements, and amenity enhancements.
Perform regular property inspections and take appropriate action in accordance with established policies and procedures.

4. Master Property Manager (MPM)

The Master Property Manager (MPM) designation is the highest distinction for property managers.

A minimum of 60 months of qualifying real estate management experience in a management role. You must have achieved 60 months (5 years) consecutive employment in real estate management before being enrolled in this course.
Hold a real estate license or verification that you are not required to hold one in your current position.
Meet all other exam requirements within one year of enrolling in the course

The pre-requisites for this certification will largely be satisfied by the prior criteria of the CPM certification. With the additional requirement of:

The candidate must meet the minimum of a managed portfolio of rental properties of 500 residential units at 1 or more sites or 100 units at 5 or more sites.

How Much Do Property Managers Make?

According to salary.com, a person entirely new to real estate and property management with a high school diploma can expect to earn around $30,000 per year. A certified property manager with a college degree coming in at an entry-level earns approximately $41,000 per year according to payscale.com. And for the more seasoned and qualified managers, Salary.com says the national average salary for a Certified Property Manager is around $57,092 per year. What you earn will depend on a few factors;

Where you are located in the US, such as property values, rental values, rental property types, and rental property sizes.
The level of competition in the rental market where you are.
Your level of education; Someone with a high school diploma will likely have to start at an entry-level position, whereas someone with a college degree in business would have more bargaining power when negotiating their salary.
The Property Management certifications you have attained.
The number of years you have been in the industry.
Additional skills you have acquired such as relevant industry tools like Propertyware or Realpage.
If your compensation package includes commission, profit sharing and/or bonuses.

How and Where Do I Start?

You’ll most likely have to apply with a real estate broker or property management company for an entry-level position such as a leasing agent working under the supervision of a property manager. Some points to be aware of; For these entry-level positions, a high-school education is adequate and most won’t require a college degree. However, if you have a bachelor’s degree in business administration, real estate, accounting, public administration or finance, the likelihood of you being hired and subsequent compensation improves dramatically. Your state will not likely require you have a real estate license when you are starting out in your career as a leasing agent since you will be working under the broker’s license of your employer. If you eventually qualify as a certified property manager, it is very likely you will then require a state real estate and/or property management license. This varies greatly state by state. So what are you waiting for? We’ve looked at the career path of a potential property manager and the requirements coming in, from absolutely no experience or for to possessing a college degree with some prior work experience. If you have the patience to learn and build your career over time, the career path is not only clearly laid out in front of you but the potential to have a genuinely satisfying and lucrative career that meets all of your professional and personal goals is there for the taking. Please note: While every attempt has been made to provide accurate and up-to-date information, this article is for informational purposes only and isn’t intended to replace the advice of qualified professionals and/or your own due diligence from official sources like your State licensing office.

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Remodeling Industry Enjoying Solid Performance

Leah Mendes — Thu, 05 Jul 2018 14:23:50 +0000

The home remodeling industry is getting a little extra boost to celebrate home improvements nationally, even though the market is already moving full steam ahead. The National Association of the Remodeling Industry and the National Association of Home Builders are advocating improvements, repairs and additions this month, but two of the housing industry’s leading indexes indicate there’s already a lot of hammering happening. NAHB’s Remodeling Market Index (RMI) and Harvard’s Leading Indicator of Remodeling Activity (LIRA) report that after the first quarter of 2018, activity continues to move forward following a strong finish in 2017. In April, the RMI and LIRA indexes suggest continued strength in the owner-occupied and rental property remodeling sectors. And the prognosis for the remainder of the year and into 2019 looks pretty good.

LIRA projects remodeling, repair spending to grow over 7 percent

Earlier this year, LIRA projected that homeowner spending on improvements and repairs will increase about 7.5 percent from estimated 2017 spending because of a robust economy and recovery from natural disasters. So far, that’s holding true. Compiled by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University, LIRA says growth of homeowner remodeling dollars will remain above 7 percent through the year and into the first quarter of 2019. LIRA, which provides a short-term outlook of national home improvement and repair spending to owner-occupied homes, estimates the current remodeling and repair market to be $340 billion. The indicator, which projects the annual rate of change in spending for the current quarter and subsequent four quarters, is intended to help identify future turning points in the home improvement and repair industry. “Strengthening employment conditions and rising home values are encouraging homeowners to make greater investments in their homes,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies. “Upward trends in retail sales of building materials and the growing number of remodeling permits indicate that homeowners are doing more – and larger – improvement projects.”

Rental properties bouncing back with more minor additions, alterations

NAHB’s Remodeling Market Index (RMI), which tracks owner-occupied and rental property upgrades, shows similar strength in the first quarter after posting a record-high 60 in the last three months of 2017. But strong showings in minor additions and alterations (with a 57) overshadowed bigger project ratings. Property managers can easily keep renters in the loop of upgrades and projects taking place with a tenant portal. Even minor alterations that are upcoming can be communicated easily through notifications, keeping tenants in the know of anything that might effect them. The RMI posted its second highest score for minor additions and alterations at 60 since the second quarter of 2015. Owner-occupied homes tabulated a 64 for the second consecutive quarter while rental properties pushed close to its most recent benchmark of 50 for the fourth time in five months. The RMI is based on a quarterly survey of NAHB remodeler members that provides insight on current market conditions as well as future indicators for the owner-occupied and rental properties remodeling market. Minor additions and alterations in rentals have steadily recovered from a significant fall at the end of 2016. The index has bounced back and forth from a 48 to 49 since the first quarter of 2017. Overall, major additions and alternations in rental properties remained healthy at 48, despite a five-point drop from end of last year.

Robust economy, recovery from natural disasters fuel remodeling

NAHB Remodelers Chair Joanne Theunissen said in January after the RMI reach 60 for overall upgrades for only the second time since 2001 that the economy and rebuilding from natural disasters played a large role. “A booming stock market and low unemployment continue to fuel consumers’ investment in their homes,” said Theunissen, a remodeler from Mt. Pleasant, Mich. “Natural disaster-related repairs also caused strong demand for maintenance and repair projects.” Future market indicators are back peddling a little from last fall, but there’s relief in the backlog of remodeling jobs. The backlog of work is shrinking and fewer short-term job commitments are being made, a sign that the construction market may be recovering from hurricanes that damaged Texas and Florida and other natural disasters. After posting one of the biggest gains in recent years in the fourth quarter, the backlog of remodeling jobs plunged 14 percent in the first quarter of 2018. In the fourth quarter, the bottleneck rose from 60 points to 66, the highest it’s been in 17 years. Last fall, when the backlog was at its highest at 66 in data released by NAHB going back to 2001, Chief Economist Robert Dietz said jobs may have been backing up because of higher construction costs and skilled labor shortages. Meanwhile, overall demand for work over the next three months has dropped four points to 58, ending a two-quarter run of growth. The rental property sector suffered an 11 percent decline, compared to 7 percent in owner-occupied.

Joint Center says outlook positive for foreseeable future

But rental properties are calling for more bids, a trend that compares similarly to the owner-occupied market. Calls for estimates jumped two points to 48 for rental properties and one point to 62 for owner-occupied properties. Improvements to existing rental properties, specifically amenity upgrades, has the potential to encourage tenants to renew their lease. Excite them by communicating the status of renovations though your tenant portal. Abbe Will, associate project director in the Remodeling futures Program at the Joint Center, said the remodeling industry will continue to move forward in the foreseeable future. The industry has come a long way since posting $267 billion in work in early 2015. “While the overall outlook is positive, one area of concern is the slowing growth in sales of existing homes, since sales traditionally trigger significant renovation spending by both sellers and buyers,” Will said. “Even with this headwind, annual spending on residential improvements and repairs by homeowners is set to exceed $340 billion by early next year.” Learn more about how Propertyware Tenant Portal helps property mangers keep their tenants up-to-date on all the latest renovations and upgrades. Sign up for a free trial!

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The New Era of Property Management

pwadmin — Wed, 23 May 2018 17:21:27 +0000

So you want to grow your existing property management business, but then again you have concerns about the future profitability of the industry. Can property management continue to be as profitable in the future as it has been in the past? The quick answer is yes, property management can be just as profitable in the future—in fact—even more lucrative if done correctly. However, your current business processes that have worked well up to this point are not guaranteed to be successful in 2018 and beyond. Property managers must be able to distinguish between what has worked well in the past and what changes will be necessary to thrive into the future.

Where does your revenue originate?

Unless you own all of the properties that you manage, your principal source of revenue likely originates from the management fee that you charge to the property owner. The typical management fee can differ, depending on the geographic region, type and size of a property. Management fees typically range anywhere from 8% to 12% of the monthly rental income for the property. Increased industry competition and technological advancements have created a new, volatile landscape. A successful property manager will need to incorporate some of the strategies below in order to continue to be profitable.

Reduce or increase staff

You can decrease labor costs by reducing employee headcount, but you will risk losing clients due to the reduced levels of customer services that you can now effectively provide. Conversely, you can increase headcount in hopes of exploiting economies of scale and to have the resources to finally grow your business. This way, you can also have faith that labor margins will decrease and revenue will increase by a greater margin. However, hiring staff is costly and there are regulatory rules that must be followed. According to the Bureau Of Labor Statics hiring employees is probably more costly than you might have envisioned. If you decide to go this route, ask yourself can you scale your business quick enough to offset the increased labor costs?

Use innovative technology

You can choose to use new, innovative technology to determine the source where your prospects and leads originate. Having insight into the specific advertising efforts that work best will help you make informed business decisions. Quality leads provide you with the opportunity to rapidly grow your business. Do you have staff dedicated to answering phone calls? If so, refer to the earlier section of this article to determine how much this is possibly costing you. Would you rather pay a few hundred dollars per month for a call center solution to manage your incoming phone calls and effectively distribute leads 24/7/365, or pay several thousand dollars to hire staff to do the same thing? You should still always offer a phone call solution that gives callers the chance to speak with with another person. Nothing annoys current and potential customers more than not having the ability to speak with a real person. Property managers can delude themselves into believing that they are reducing costs and saving money by doing mundane tasks such as taking phone calls themselves. Service businesses owners often reduce potential profits by not properly valuing their own time and efforts.

Simplify how future customers will find you

Your website is a 24/7 storefront and one of the most effective tools to generate leads. Make sure that your website is mobile-responsive and ranks highly in Internet searches for key terms that attract your target audience. Does your website provide relevant information, take a potential client to the right place and make it simple for them to contact you instead of a competitor? Investors and property owners want to feel confident that you understand the rental market, can maximize revenue and care of their properties. Build credibility, publish blogs, videos and landing pages that explain who you are and what sets you apart from the competition. Decide who your target audience is and how to best reach them. SEO, SEM and social media are some of the best ways to focus on targeting the right people. Having a plan for each will ensure that you spend less money and get more ROI.

Charge for maintenance

Does your property management company generate additional revenue for coordinating rental property maintenance? Coordination of property maintenance does take some of your valuable time, correct? Do you markup repair costs to the property owner? Do you consistently know the standardized cost for supplies and common repairs so that you can be sure that you are not being overcharged by vendors? Are you able to pay your vendors rapidly enough to obtain the discount terms for early invoice payment? This may come as a shock but many property management companies earn far greater revenue for their maintenance and coordination efforts than they do on property management. You owe it to your company to check with your property management software provider to learn what all maintenance, repair and scheduling options that their property management software can provide. Yes, you can grow a very profitable property management business in 2018 and beyond, however you must understand that what worked in the past is not always what works best today. You must also always be willing to look at all facets of your business for possible changes. An open mind and analytical approach to possible change process is a critical factor in determining future success. Good luck in this new era of property management! Editor’s note: Thought leadership statements belong to the contributor and do not necessarily reflect the views of Propertyware. Jimmy Warlick works in the sales department at Propertyware and has been with RealPage for seven years. He has worked in the property management industry for 12 years. Before joining Propertyware, Jimmy served in the United States Air Force in Europe and also worked for the U.S. Justice Department. Jimmy is a University of Texas at Dallas graduate and calls the DFW area his home, where he lives with his wife and two daughters.

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