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10 Growth Hacks for a More Profitable Property Management Business

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post from Appfolio

businessman and buildings

It’s simple: in order to grow, you need more property owners. While there are some owners who think they can double as a landlord on their own, there are those who can’t and need help—they just don’t know how to select the right property manager.

Let’s explore 10 unique hacks guaranteed to expand your portfolio by attracting more property owners to your management company. It takes time to find new owners; so make them come to you.

Growth Hack #1 – Productized Rental Reports

It’s always important to know what similar properties in your area are renting for so you can stay competitive and successful. With these insights you’ll have the confidence to adjust rental prices to maximize your revenue and fill vacancies faster.

[AppFolio’s built-in rent comparison tool does this for you, saving you the research time!]

Growth Hack #2 – Content: Create Articles to Get Found by Owners

Why is content important? For so many reasons! Content comes in so many shapes and sizes: blog posts, videos, case studies, your website.

  • Blog articles show authority and knowledge
  • Video content can grab prospective renters’ attention
  • Your website can show what you can offer to renters and owners and build your online presence

Content in action

All of this content combined is hugely important because roughly 70% of searches on Google are long tail. Using long tail keywords in your URLs, content, page titles, and meta descriptions is a popular marketing technique and a way to build authority and an audience. You can use Google’s free Keyword Planner to find keywords that are relevant to your audience and get insight into what people are searching for. Incorporating these words and phrases into your content can be extremely valuable to your appearance in search engines. For example, property owners looking for new property managers might search “Best Property Manager in [input city here]”— so make sure you have content that answers that question on your website. Otherwise, you’ll lose out to the property manager that does.

Growth Hack #3 – Lead Nurturing: Build Relationships through Value

  • 50% of leads are qualified but not ready to buy. (Source: Gleanster Research)
  • 69% say that creating relevance is the most effective method for lead nurturing. (Source: Ascend2)
  • Email marketing is proven to have 4,300% ROI (Source: Direct Marketing Association)

What do these stats mean? That you need to bring value to prospective leads. You can do this through producing high-quality and useful content in the form of customer videos, property walk-throughs, testimonials and reviews from happy renters, and more. Prove to your prospective owners why you’re a good investment and someone people like to work with.

Growth Hack #4 – Reputation: Attracting Owners to Your Business

Online brand reputation and reviews are very important to your growth and success as a property manager. A whopping 92% of customers read online reviews before making purchases. In fact, you can experience a 5-9% boost in revenue by increasing your overall Yelp Rating by just one star. But how can you improve your online reputation when there is such a negative vibe around online review sites? Ask for positive recommendations from your current residents who love your properties! The good reviews will stand out over the bad in the long run.

If you need more help building up your positive online reputation and responding to any negative commenters who are making your life difficult, check out our post: Hug Your Haters.

Growth Hack #5 – Pay Per Lead

One of the more controversial hacks in the list, Pay Per Lead (PPL) either works very well for your company, or doesn’t work at all. PPL refers to buying new unit leads from sites that sell these leads individually. The success of a Pay Per Lead campaign depends on your current marketing budget, ability to scale growth, and the number and quality of leasing agents you might have. PPL is more successful if you are willing to spend the money to wade through potential duds, but on average has a better conversion rate than most other marketing tactics.

Growth Hack #6 – Pay Per Click

A much less risky alternative than Pay Per Lead and a more widely applicable method for attracting new owners, Pay Per Click refers to paying for a top spot on page 1 of all Google searches related to your company in your area. Paying per click also means that you don’t pay a dime unless your site is visited from that link, guaranteeing that the person searching for you has an interest in your company. Dollar for dollar, this is also a cheaper alternative to buying portfolios from other PMs in your area—acquisition costs are usually about $1,200 a unit, where average Pay Per Click costs average $350 per unit.

pay per click

Growth Hack #7 – For Rent By Owners (FRBOs): Calling the Landlords in Your Area

Why is this important? One of the most successful ways to grow your business as a property manager is to build your network. People are afraid to pick up the phone these days, but don’t be. It’s valuable and there are ways to prepare for those phone calls. Have a script in place so you can practice it and get comfortable saying it—without it sounding like a script. Also, have a structured process in place for researching who you are going to reach out to, when you’ll reach out, and any follow up with them later.

Growth Hack #8 – Join Local Organizations

It’s important that you get to know the fellow owners in your area. Become a pillar in your community. The more people you know, the more relationships you can build. It’s all about networking!

Growth Hack #9 – Utilizing Video – Get Ahead of the Curve

stats-slide

YouTube is the 2nd most used search engine in the world. People love videos! Create short, digestible and fun videos that show off your properties (the atmosphere, style, services and amenities). Make people interested in working with you, e.g. be personable and welcoming. Check some examples of what other successful property managers in your area are doing on YouTube for inspiration.

Growth Hack #10 – Have a Growth Plan

As a property manager you need to optimize on what’s working for you. First, track the source of all your leads so you actually know what’s working (don’t guess!). If one of these strategies is more successful than the others, put your energy (and marketing dollars) into that particular strategy to make it work even better for you.

Ask yourself, how many properties am I looking to add to my portfolio in one year? Two years? In five years? Where do you see yourself? Are you managing residential, or commercial, or student housing, or HOA properties? A mix of all of the above? Set a goal for yourself and devise a plan to get there.

The post 10 Growth Hacks for a More Profitable Property Management Business appeared first on The Official AppFolio Blog.

appfolio Appfolio | Company Website | LinkedIn Connect |

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

Summer Season Property Maintenance To-Do List

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post from Appfolio

maintenance tools 1

Summer is almost here; and it’s a popular time for renters to move in and out of apartments. If you’re busy welcoming new renters, performing move-out inspections in vacant units, and trying to get apartments rented property maintenance can fall by the wayside until things calm down. Yet your renters deserve clean and well-groomed common areas. Make sure your apartments look their best all summer long by adding these summer season maintenance tasks to your to-do list.

Property Exterior Summer Maintenance Tasks

Focus your energy on keeping your property exterior looking great in summer, when outdoor areas will see increased usage.

Put outdoor lighting in place: Long summer nights entice renters to stay outdoors in common areas. To help them get back inside safely, make sure that you have outdoor lighting illuminating pathways and doorways. Solar lighting is an energy-efficient, modern option that requires little maintenance once installed.

Trim grass: For comfort and protection from pests, keep grass trimmed regularly. Set a reminder in your calendar so you remember to mow the lawn every two weeks (or on the schedule of your choice), or contract out to a landscaping company if you prefer not to do this yourself.

Perform a garden/common areas landscaping cleanup: Late spring and early summer is a perfect time to trim back plants, trees, and shrubs. Don’t forget to weed paths and walkways, where little plants can spring up in cracks and make your property look shoddy.

Mulch garden beds: Flowers, trees, and shrubs get thirsty during summer heat. Adding 2-3 inches of mulch to garden beds helps the soil retain water for longer. Plants will look better during long, hot summer days; you will also conserve water usage and reduce utility costs through this eco-friendly landscaping tip.

Wash and repair deck and patio spaces: Outdoor common spaces like decks and patios will see heavy use in summer. Check all of these common spaces now, and make any repairs that are necessary (such as repainting or replacing a loose deck board). Then clean all common areas to remove dust, dirt, and grime. To help keep these areas tidy and reduce the amount you’ll need to clean up after renters, install trash cans on decks and patios.

Clean window wells and gutters: To ensure that rain can flow freely, clean out window wells and gutters seasonally, including as part of summer landscaping. Remove leaves, dirt, waste, and debris.

Property Interior Summer Maintenance Tasks

Tackle these tasks to keep interior common areas pleasant in summer.

Have air conditioners serviced: Whether you have window air conditioners in common areas or enjoy central air conditioning, summertime will place a big demand on your AC. Be prepared by having your air conditioning serviced by a reputable HVAC company. This way, you can make repairs or replacements so your units will work properly when it matters most.

Address gaps in windows, doors, and walls: Summer is prime pest season. These critters get inside through holes in windows, screens, doors, and walls. Get ahead of the pests by sealing cracks in windows and doors using caulk or expandable foam. If you notice that screens have rips, repair them to minimize your work mitigating pest problems later on.

Test smoke and CO2 alarms: Test unit smoke and CO2 alarms several times a year. By adding this to your seasonal property maintenance list, you can help keep residents safe.

Have interior carpets and furniture cleaned: After wet, muddy spring weather passes, treat interior carpets to a deep cleaning. Hallways will look brighter when carpets are cleaned. Many residents will breathe easier when mold, dust, pollen, and other allergens are removed from common area carpets. At the same time, clean interior furniture. Regular cleaning of furniture can forestall furniture replacement and keep your apartment looking its best.

When you are able to keep up with summer maintenance, fall clean up won’t be as time-consuming and you’ll feel less stressed as a result. Property Managers, what other tips do you have for keeping your properties well-groomed all summer long?

appfolio Appfolio | Company Website | LinkedIn Connect |

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

You might also enjoy:

Hot Apartment Marketing Ideas for Summer

The Importance Of Preventive Maintenance On Properties

The post Summer Season Property Maintenance To-Do List appeared first on The Official AppFolio Blog.

7 Ways to Drive More Traffic to Your Apartment Listings

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post from Appfolio

apartment listings seo

It’s basic statistics. The more people see your apartment listings out in the wild, the bigger your pool of possible applicants becomes, and the faster you can rent your vacant units (and the happier your property owners will be). For property managers looking to fill vacancies quickly, these 7 tips to drive traffic to apartment listings can make all the difference.

#1 Create high-quality listings

Even if traffic is your ultimate goal, you need to have strong listings to turn that high traffic into paying renters. High-quality listings benefit most from detailed, accurate descriptions of properties and amenities and clear photos that show apartments in their best light. Once your listings look good, you’re ready to share them.

How to Take Better Photos for Your Property Listings

10 Best Practices for Listing Your Properties

#2 Use real estate aggregator sites

Renters in many cities use aggregator websites like Trulia or Zillow to search for homes and apartments for rent. If your apartment complex has fewer than 50 units, you can create a free listing on Zillow or Trulia. If your complex has more than 50 units, you will need to pay to list the property. Even if you have to pay, this is a great way to increase both listing views and tenant applications. Property management software can ease this manual burden and cost by streaming your listings to third-party sites.

5 Rental Sites for Listing Your Properties in 2016

How AppFolio Boosts Your Marketing Efforts in 2016

#3 Blog about your apartment community

A blog is a convenient way to share helpful information with your existing tenants, increase placement in search results for your apartment complex, and advertise vacancies. Blogs don’t have to be time-consuming; even just blogging once a week can increase the placement of your apartment and open listings in search results. The higher up you can land, the more users will click through to your listings page.

6 Blog Topic Ideas for Property Managers

#4 Pay for online advertising

PPC or pay-per-click advertising can be a simple yet effective way to generate listing traffic. Set a budget and select keywords that include your city or town plus search terms like “studio apartment,” “town home for rent,” or “2BR apartment.” You’ll only pay when users click through to your listing. PPC ads are a reliable way to get traffic quickly. If you accept pets, have short-term rentals, or have any other niche that will set you apart, PPC advertising can help you attract renters searching for apartments like yours.

Grow Your Property Management Business Through Local PPC

Improving Your Digital Marketing Strategies

#5 Share apartment listings on social media

Social media is a great way to drive traffic to apartment listings, yet many property managers aren’t using social media to advertise vacant units. Advertise your open listings across Twitter, Facebook, Instagram, and Pinterest. Include high-quality photos of your apartment and a brief yet compelling description. Existing tenants will share your social post with friends looking for an apartment for rent, effectively marketing on your behalf. While it will take a little time to create initial social posts for apartments, you’ll be able to reuse the descriptions going forward to be more efficient.

Property Manager’s Guide: 7 Steps to Social Media Renting Success

#6 Shoot an apartment video

People love watching and sharing videos. In fact, according to Hubspot 55 percent of web users watch and share at least one video every day. Investing in quality video production will help you generate awareness and desire for properties that you manage. Consider shooting a virtual tour of units as well as a tour of the outside of your apartment complex and all common areas. General videos are best, since they can be reused with all new vacancies.

Lights! Camera! Action! Getting the Most From Virtual Property Tours

#7 Reward tenants for sharing open listings

If you’ve tried all these tips and you still need traffic for open listings, recruit your residents to help you out. Host a contest where renters must share your apartment listing via social media and tag you in the shared post. Then use a random giveaway to reward a renter with a gift certificate, pair of movie tickets, or other incentive. Renters will love the chance to win something for free, and you’ll love the increased traffic.

When testing out these strategies to increase listing views, have patience. Some strategies can take a while to pay off, but they will reward you if you just keep with it. Property managers, have you tried any unusual techniques to drive traffic to your property listings? If so, what’s worked for you?

The post 7 Ways to Drive More Traffic to Your Apartment Listings appeared first on The Official AppFolio Blog.

What Millennials Want: How to Attract Millennials to Fill Your Apartment Vacancies

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post from Appfolio

millennial renters

To fill open units and reduce vacancies, you need to know what millennials look for in apartments to rent, then exceed their expectations. While millennials have somewhat different values and preferences than other tenants, with a few tweaks you’ll be able to adjust your approach to attract them.

What Millennials Want in Apartments

Many millennials are long-term renters who are not prepared to buy a home anytime soon but want flexibility in their living arrangements in case they need to move for work or a relationship. They might have a high amount of student loan debt and need predictable expenses so they can set aside income to pay their loans.

Even if they are on a budget, millennials still want to go out and enjoy life. They prefer apartments located near restaurants, bars, cafes, nightclubs, parks, gyms, and other places they can hang out, be social, and entertain themselves.

Yet these renters are not just party animals. Millennials care deeply about the environment. They insist upon recycling at a minimum (composting is a plus). They want to curb water and electricity usage, and enjoy finding new ways to conserve, reduce, and reuse. As much as these renters love being online and using social media, they also like to hang out in person and value community.

They prefer to stream shows on the internet, so fast internet is a key to keeping these tenants happy. On a related note, the internet is their first-choice tool for everything from ordering up food delivery to looking for apartments. You absolutely must be online to connect with these renters.

Millennials also tend to be phone shy. Instead of calling you on the phone or meeting with you in person, they’ll probably opt to send a quick text or email.

Ideas to Make Your Apartments More Attractive to Millennial Renters

Now that you know what millennials like, you can position your open units as modern, efficient, and community-oriented to appeal to these renters. There are many ways to go about it.

Ways to make your apartment modern:

  • Develop an attractive website to show off your open units and evidence of your modern approach to property management
  • Allow renters to apply online and pay rent electronically
  • Let renters make maintenance requests online
  • Use millennials’ preferred communication methods of email and text message when possible
  • Create social media accounts for your apartment complexes to build an online community

Ways to make your apartment efficient:

  • Install low-flow toilets and shower heads in bathrooms
  • Use compact fluorescent or LED lights in common areas
  • Offer recycling and composting services on site
  • Insulate your property to reduce drafts and slash utility bills
  • Switch to energy-efficient appliances when upgrading units
  • Use programmable thermostats in common areas to keep expenses low
  • Have an Earth Day event at your apartment complex
  • Adopt solar panels, wind power, or another source of renewable energy
  • Showcase all the eco-friendly steps you take on social media and on your website to attract renters who care about their environmental impact

Ways to make your apartment community-oriented:

  • Advertise neighborhood amenities, from bars and restaurants to farmers’ markets and parks
  • Show photos of community perks (like your swimming pool or picnic area) on your website
  • Host parties, movie nights, or social hours – and then post pictures on your website
  • Engage with renters on your social media channels
  • Have a virtual bulletin on your website where residents can engage and connect with each other

It is illegal to actively discriminate against renters of any age, so make sure not to explicitly turn anyone away from renting an apartment because they are or are not of millennial age. The good news is, all of these millennial-friendly strategies you adopt will make your apartment a better place for all renters in your community.

You might also enjoy:

Who Drives Rental Property Market Growth in 2016?

Mobilize Your Property Management Business

Mobile Marketing: Touring Your Property on a Smartphone

The post What Millennials Want: How to Attract Millennials to Fill Your Apartment Vacancies appeared first on The Official AppFolio Blog.

appfolio Appfolio | Company Website | LinkedIn Connect |

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

Multifamily Permits Declining from 2015

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post from Axiometrics, IncTotal U.S. housing starts slowed in March after accelerating in February. Privately owned housing starts in March were at a seasonally adjusted annual rate (SAAR) of 1.089 million units, 8.8% below February’s revised estimate of 1.194 million according to the U.S. Census Bureau.

Total residential starts were 14.2% higher than the March 2015 rate of 954,000. The 764,000 single-family (SF) starts reported in March, on an annual basis, were down 9.2% from February, but up 22.6% from March 2015’s annual rate. The 312,000 multifamily starts were down 8.5% from the previous month’s annual rate, but increased just slightly (+0.4%) from March 2015.

Total residential permits from municipal and other authorities reached 1.086 million units in March on a SAAR basis, a 7.7% decrease from February’s annual rate but a 4.6% increase from the March 2015 figure. Annual permits for SF homes slipped 1.2% from February to 727,000, but increased 13.2% from March 2015. The annual rate for SF permits has exceeded 700,000 units for six consecutive months.

The 324,000 multifamily permits issued in the 12 months ending March represented a 12.4% decrease from March 2015’s annual rate of 370,000 units and were 20.6% below February’s annual rate. March’s annual rate was 28% below the 12-month average of 447,000 units (SAAR).

Housing Starts in U.S. Declined by 5.9% Amid February Snow
Mar16Cons_1.jpg
 Other U.S. Census statistics of note:

  • Annual gains in total starts from March 2015-March 2016 were spread across all regions, despite slowing multifamily starts in the Midwest (-40.0%) and South (-10.4%) regions. Multifamily starts significantly increased in the Northeast (+21.4%) and the West (+47.4%).Mar16Cons_2-1.jpg
  • Annual single-family starts were down in all regions from February: -8.6% in the Northeast, -21.2% in the Midwest, -4.9% in the South and -9.1% in the West. But all regions increased from March 2015 rates: 20.5% in the Northeast, 41.4% in the Midwest, 17.5% in the South and 24.3% in the West.
  • Annual total residential permits increased from the March 2015 rates in the Midwest (+24.2%) and South (+11.3%), but the Northeast (- 21.7%) and West (-6.1%) declined because of slowdowns in multifamily permits. Annual single-family permits increased in all regions from March 2015. Compared to February’s SAAR, however, the West (-6.8%) and Midwest (-3.2%) declined, the Northeast saw no gain or loss and the South was up 1.2%.
  • A total of 1.061 million residential units were completed in the 12 months ending March 2016, a 31.6% increase from March 2015 and a 3.5% increase from February. SF completions were up 23.2% to 734,000 units for the year on an annual basis, while multifamily completions increased by 58.8% to 316,000 units from March 2015.

Metro Focus

The top 10 Metropolitan Statistical Areas for multifamily permitting for the trailing 12 months ending March 2016 were:

Mar16Cons_3.jpg

Nine of last month’s top 10 metros for annual multifamily permits returned to the list again in March and in the same order. Nashville jumped from No. 12 in February to No. 8 in March. Denver dropped from No. 8 to No. 11 in March.

Nashville and Dallas were the only top 10 markets with increased annual multifamily permits from the previous month; the remainder of top 10 markets decreased by an average of 650 units. Compared to one year ago, New York’s increase in annual multifamily permits of more than 34,000 units (mostly attributable to tax credit law changes) still leads the rest of the top 10, but Dallas (+8,167), Nashville (+3,285) and Atlanta (+3,291) also had strong increases. Boston increased its annual total from last year by about 1,800 units permitted, while Houston (-6,770) and Seattle (-4,029) slowed their multifamily permitting pace considerably.

The total number of annual multifamily units permitted in the top 10 metros (178,199) was 28.5% higher than the total for the same 10 metros one year ago, but 2.1% less than February’s 12-month total (182,004). This month’s top-10 total is about the same as the total for the next 54 metros (178,595).

Within the current top 10 metros, annual multifamily permitting increased significantly from March 2015 in:

  • New York (+122%).
  • Nashville (+58%).
  • Dallas (+52%).
  • Atlanta (+37%).
  • Boston (+26%).

Annual multifamily permitting increased moderately from March 2015 in:

  • Washington, DC (+3%).

Annual multifamily permitting decreased from March 2015 in:

  • Los Angeles (-1%).
  • Austin (-4%).
  • Seattle (-27%).
  • Houston (-27%).

Access the latest permit trends tables in Excel format here.

Please contact us if you have any questions.

Jay Denton
Senior Vice President
KC Sanjay
Sr. Real Estate Economist
Chuck Ehmann
Real Estate Economist

Large Apartment Markets Drive Moderation Trend: Secondary Markets are the Hottest

Written by Landlord Property Management Magazine on . Posted in Blog

Contributed by Dave Sorter, Axiometrics

The expected moderation that occurred in the national apartment market during the past two quarters was the result of many factors – a wealth of supply entering the market, regional Apartment_Market_Moderation.jpgeconomic conditions and unsustainably high rent growth among them.

When annual effective rent growth and occupancy rates decline, it can be difficult to remember that just a few months earlier, the sector was in the midst of its strongest period since at least the start of the Great Recession.

Just as a presidential election is, with the Electoral College, the aggregation of 51 state/federal-district elections, national apartment performance is a compendium of hundreds of metro markets throughout the country. Obviously, larger cities have more apartments and have greater weight in the national averages.

The recent moderation has been largely the result of sharp decline in many of the largest metros in the nation. Some of them, such as Houston, have suffered from economic woes combined with a glut of new supply. Others, such as San Francisco and Denver, also experienced lower job growth near the end of 2015, but had such high effective rent growth that it had to decrease eventually.

And the largest market, New York, has also sustained significant rent-growth decline in the past half-year. Other very large metros, such as Atlanta, Dallas and Los Angeles, have neither increased nor decreased significantly. In fact, no really primary market is in the fast lane of growth.

As rent growth in these metros declined or maintained, however, the metrics started surging in smaller markets. Sacramento has seen an exceptional increase in annual effective rent growth in the past six months, and Salt Lake City has made its way into the top 10 among metros with the highest rent growth. Long Island and Newark are no longer playing second fiddle to the Big Apple.

A look at year-to-date effective rent growth in some of these markets tells the story of how some larger markets have moderated while some smaller markets have strengthened.

San Francisco, for example, combined with Bay Area neighbors Oakland and San Jose to comprise three of the five highest rent-growth metros for much of the first half of 2015. But the chart below shows that, come September, 2015 YTD rent growth for San Francisco apartments dropped from the second-highest figure since the recession to the lowest. As of March, 2016 YTD rent growth also is at a post-recession low.

San_Francisco_Apartments_YTD.jpg

Denver had a similar end to 2015, finishing with its lowest YTD rent growth of the recovery – though 5.6% was fairly robust. Things were looking the same through the first two months of 2016, with negative YTD rent growth in January, though a strong March rebound moved Denver apartments out of the post-recession basement.

 Denver_Apartments_YTD.jpg

Houston apartments, still sustaining minimum job growth as a result of a weakened oil industry, had negative YTD rent growth in March for the first time since the recession ended. This following a 2015 that beat out only 2010 among the post-downturn years.

Houston_Apartments_YTD.jpg

Sacramento is on the other end of the spectrum. After experiencing some lean years during the early part of this decade, this metro’s 2014 and 2015 were the strongest of this cycle. This year is on the same track, with March’s YTD effective rent growth for Sacramento apartments some 80 bps above the next-highest March, in 2012.

Sacramento_Apartments_YTD.jpg

And while Salt Lake City’s March 2016 YTD rent growth is the third-highest of the post-recession period, it was the highest since 2013 and continued the trend started in the second half of 2015, when the metro avoided the common fourth-quarter dip and climbed to tie for the highest year-end rate of the decade for Salt Lake City apartments.

Salt_Lake_City_Apartments_YTD.jpg

With annual effective rent growth either declining or relatively stable in most major markets over the past half-year, it follows that the national market would mimic that trend. The smaller markets are somewhat offsetting the moderation of their bigger brothers and are on pace to continue to do so, as national rent growth is forecast to average 3.5-4% this year.

Dave Sorter

Dave Sorter is an award-winning journalist who spent 30 years as a newspaper reporter and editor before joining Axiometrics. He oversees all Axio blogs and newsletters and serves as senior editor of all Axio publications.

“Nobody gave me a copy of…”

Written by Landlord Property Management Magazine on . Posted in Blog

please sign this contact“Nobody gave me a copy of…
By John Cottrell

the lease during escrow!”…“The lease you had was with the previous owner”… “I didn’t sign any lease”… “All contracts were canceled when I purchased the property.” These are some of the statements heard by laundry service companies from new owners of apartment buildings.

Purchasing a multi-family property can be an exciting, yet challenging endeavor. There is the loan process, the seller, the residents, due diligence, escrow, paperwork galore, etc. Keeping informed about everything involved in the process is a daunting task at best for a prospective buyer.

It can also create difficult times for a laundry service vendor who gets to explain to a new owner that they have the right to continue to provide their services at the property for several years.

There appears to be a myth about the following two things “automatically” canceling laundry contracts: 1) when a property is sold, and 2) when a property is purchased through a foreclosure. Neither of those offers such assurance. I am hopeful that this article will assist prospective owners in finding out about the possibility and validity of an existing lease BEFORE escrow closes.

There are 3 basic types of notice indicating that there may be an existing lease for the laundry space. Actual notice—the prospective buyer knows of the existence of the lease. This is the case in most purchases. The buyer may receive information about, or a copy of the lease, from the seller, their agent, the escrow or title company, etc. Constructive notice—The lease may have been recorded in a County Recorder’s Office. The recorded information should come up in a title search. Note: Although the title search should show the existence of a lease, it may not give the entire terms of the lease. The laundry vendor should be contacted to have a copy of the entire lease put in the escrow. Inquiry notice—Most laundry vendors have signs in the laundry rooms and/or on the machines with their name, phone numbers, etc. California law is straightforward in saying that this clear and apparent possession gives the prospective buyer an affirmative duty to inquire as to the basis under which the vendor is in possession of the laundry space. When doing due diligence and walking the property, the laundry facilities should not be ignored.

Let’s briefly discuss foreclosures. Not all leases are extinguished by a foreclosure process! Generally speaking, a lease is extinguished if that lease is subordinate to the foreclosed deed of trust. In a case where the lease is dated prior to the note that was foreclosed upon, the lease is generally considered senior, not subordinate to the foreclosed deed of trust. The lease would still be valid and in full force and effect. Again, not every case is clear-cut, and there may be other circumstances to be considered, but this a dependable “rule-of-thumb” tool.
Generally speaking, laundry space leases “carry with the land”. If a new owner comes in, they are bound by the terms of the laundry lease currently in place. They are similar to the rental leases with the residents. A purchaser cannot arbitrarily go in and cancel all of the leases the residents had entered into with the previous owner.

There are cases where a purchaser of a property thinks the lease is not binding, and the vendor contends that it is. In this case, the property owner should not remove the vendor’s equipment. (Just like the fact that you cannot go into an apartment unit and throw all of the resident’s belongings out). THE LAW MANDATES PROPER LEGAL PROCESS BE FOLLOWED, I.E., AN UNLAWFUL DETAINER ACTION.

“Self-help” remedies, such as denying residents and the laundry service company access to the facilities, or removing the equipment are not recommended, nor legal. These actions could force the vendor to file a Forcible Detainer action, which could include recovering possession of the premises, actual damages, additional damages allowed by statute, attorney’s fees under the lease, and other relief allowed by law. Laundry service vendors would normally be more interested in discussing an amicable solution than proceed with litigation; however, they have the lawful right to enforce the terms of their lease.

Bottom Line—If you cannot work something out with the vendor, get dependable legal advice to help you proceed accordingly. Contacting an attorney with experience in “contract law” is recommended and may save you time, energy and money in the long run.

The information in this article is intended to help prospective buyers with one phase of the sale that does not always get attention when looking at the “big picture”. It can also help provide a smooth transition between the laundry service vendor and new owner.

Should you have any questions about your current lease, please feel free to contact me for general assistance.

Bio: John Cottrell is the General Manager for All Valley Washer Service, a leading coin and card-operated laundry service company servicing multi-family properties throughout ALL of California for over 57 years. Mr. Cottrell has been with the company for 26 years. If you have any questions regarding this article, please contact him at john@allvalleywasher.com.

4 Ways Property Managers Can Save Money (and Water)

Written by Landlord Property Management Magazine on . Posted in Blog

save money and water

No property manager wants to pay too much for water. However, if those costs aren’t kept in check through good practices, the results can be much worse than a costly bill.

Just ask the residents of a condo in DeKalb County, Georgia. In February, the condo’s property management company threatened to condemn the building and evict the residents if they didn’t pay — wait for it — a $130,000 water bill. The building’s owners paid $220 a month to the property management company, but the dues simply weren’t enough to cover the absurd water costs.

What kind of water situation leads to such a high bill? While it’s possible the association in DeKalb misused funds, sometimes the answer is simply that the charges really are that high.

Water usage skyrockets when tenants of a complex or association use too much water, don’t report leaks properly, or simply are unaware of a leak. As costs rise, the property manager often doesn’t have the funds to cover the unexpected bill.

That debt gets passed along to residents, which opens the door to a situation like the one in DeKalb County.

Keeping Costs Down

Every property owner wants to avoid unexpected bills and angry tenants, while those same residents would rather not pay higher fees that go straight to the water company. This is precisely why property managers looking to maintain costs must make managing water usage a top priority.

In 2015, water prices rose at a higher rate than almost any other household expenditure. Some cities combat this rise with different pricing tiers, but simply charging people more for higher water usage doesn’t address the real issue. The solution isn’t to cause affordability issues; it’s to control water waste.

Property managers usually employ several strategies to manage water waste. But when the problem has so many potential causes, it’s hard to know which fixes are worth the money and which just cost more. Below are four potential strategies to curtail water usage, as well as an analysis of whether they’re worth the investment:

1. Ensure regular preventive maintenance.

Over time, the working parts and seals on toilets and other water-based devices deteriorate, especially toilet flappers. If the valve doesn’t let enough water through, residents will often flush multiple times and consume double the water. And if it lets too much water through, water is wasted with every flush. (Leaking flappers can also cause water to run constantly.)

To provide maintenance, property managers must include a clause in every lease that calls for regular inspections in every unit. After moving out, every faucet, appliance, and pipe requires a thorough check to ensure each works properly.

If you think you have a toilet leak, drop some food coloring in the tank. If the dye trickles into the bowl, replace the flapper. Also, keep a close eye on your shower diverters to make sure the water isn’t running to the tub while the shower is on.

Remember: The best way to solve a problem is to stop it from happening in the first place.

Verdict: Always worth the investment

2. Convert to more efficient equipment.

Many older toilets use 3.5 gallons of water per flush. However, the Energy Policy Act of 1992 lowered new toilets’ flush volume to 1.6 gallons.

This change didn’t just help the environment; it dramatically reduced water costs on newer toilets. However, much of the water that flows into a toilet tank during the fill cycle goes directly into the bowl, resulting in up to 1.5 gallons wasted for every flush.

Installing diverters can help this problem, but they’re not the best option for every toilet. Replacing toilets en masse can be expensive but saves more money in the long run.

To get the most bang for your buck, have a water savings expert examine water usage throughout the entire building. Wide-scale upgrades present high upfront costs, so it’s ultimately more cost-effective to hire someone who can analyze the property as a whole and suggest the most appropriate course of action.

Verdict: Worth the investment after an expert analysis

3. Submeter every unit.

Even for property owners who don’t bill tenants for water, submeters are beneficial for monitoring usage. They let you see who uses the most water and when, and they identify potential new leaks or illegal devices.

The use of submeters to gauge volume and time of water usage also helps determine hot water usage, which affects an energy bill. With the cost of water and other forms of energy continuing to rise, attacking both fronts can help property managers save.

Unfortunately, putting submeters on older building can be a major hassle. Installation usually involves going under the floors and behind the walls, which makes the cost prohibitive to the potential savings.

This strategy is effective for newer buildings, but it can be challenging in those that older.

Verdict: Only worth the investment in new buildings

4. Find and fix every leak and drip.

Without a water monitoring service, you won’t be able to detect problems as they happen. Inspecting your units is the best way to find the leaks immediately and fix the problem.

Doing unit inspections more than once a year are impractical and costly. A water monitoring service alerts you to leaks and other waste problems. This, along with an inspection service, helps you prevent, detect, and repair leaks and waste.

Along with a full-on leak repair initiative, educate residents on the importance of reporting leaks and defects. Hang fliers and show residents how quickly you respond to the problem once they bring it up.

Verdict: An inspector is worth the investment when combined with a water monitoring service. Educational campaigns cost next to nothing and should be part of any strategy you decide on.

Property managers don’t have to fix the world’s drought problems, but they do suffer from inefficient water usage more than others. Rather than make tenants uncomfortable or penalize water usage, simplify water conservation and invest in a sound infrastructure to lower present and future cost

Source: Four Walls

– See more at: http://www.american-apartment-owners-association.org/property-management/landlord-quick-tips/4-ways-property-managers-can-save-money-water/#sthash.5dS8IPLZ.dpuf

Dear Maintenance Men – Maintenance Tools & City Inspections

Written by Landlord Property Management Magazine on . Posted in Blog

DearMaintenanceMen

Dear Maintenance Men:

I am going to university and want to use my DYI skills to supplement my income.  Being that I live in a college town, there are a lot of rentals aimed at students.  Since students are sometimes hard on their living quarters and move a lot, I figured there might be a maintenance market for repairs and making rooms and rental units rent ready.  I don’t have a lot of money to invest in tools and want your recommendation for the minimum I might need tool wise to get started?

Bryan

Dear Bryan:

Good thinking Bryan, you might just be on to something; students can be a bit hard on rental units! Keeping in mind that as a college student yourself, you have limited funds, so other than a cordless drill, we will leave power tools out of the picture. The majority of the repairs will involve drywall, plumbing and cleaning. Other than light bulbs, leave the electrical to the pros.

Basic Tools

  • Retractable utility knife
  • 5 in 1 paint scraper
  • Drywall saw
  • Drywall mud and tape
  • Bucket
  • Hacksaw
  • Claw hammer
  • Tape measure 25’
  • Caulking gun
  • 6 way screwdriver
  • Adjustable wrench
  • Channelock tongue & groove pliers
  • Small hand snake for bathroom sinks.
  • Toilet plunger
  • Broom and dust pan
  • Gloves
  • Flashlight
  • Safety glasses
  • Step stool
  • Cordless drill/screwdriver

This is a limited tool set used for light duty work. Try to buy quality tool. Many can be found at garage sales for a fraction of the retail price. With these tools, you will be able to change a faucet, repair drywall holes, unclog bath sink drains, caulk bathtubs, haul trash etc.

Dear Maintenance Men,

I am planning major remodel work to my 4plex and need some advice. My contractor has told me not to worry and he will have everything under control but I know that city inspections can cause serious delays if we are not ready for them or do something wrong. I am not an expert or experienced in construction, what should I watch for as far as the actual inspections are concerned?

Bob-

Bob,

It is not often we are able to share our experience on the actual General Contracting and building side of our business so, thank you for your question.

We have listed the top reasons why professionals do not pass inspections taken from a 2015 JLC (Journal of Light Construction) survey.

Foundation: Improper reinforcement or support of rebar

Wall Framing: missing fire-blocks, hold down straps etc.

Floor framing: missing anchor bolts, sheeting nails missing joist.

Trusses: bracing not installed, improperly connected to wall plate

Roofing: over driving of nails in shingles, missing nails, incorrect felt

Window and Door: improper flashing, inadequate fire rating, improper weather stripping

Handrail: Improper height or spacing

Plumbing: missing nail plates, improper pipe support

Electrical: missing grounds, GFCI protection, labeling of circuits

Decks: deck not built according to the plans, improper handrail installation

Dear Maintenance Men:

I have been contemplating the purchase of a high pressure sprayer for my employees to use in maintaining and cleaning around my apartment buildings.  Because these pressure washers produce a powerful stream of water, I am worried about my employees hurting themselves or damaging the building.  What size machine do you recommend and how safe are they to use? Should I rent one first?

Julia

Dear Julia:

As with any large ticket items it is always prudent to “try before you buy”. Fortunately there are a variety of rental places to choose from which carry all sizes, makes and models.

A rental yard will often use the best and longest lasting machines. Most times these companies can provide you with the best information on the products in regards to maintenance, wear & tear, life expectancy and performance.

In regards to workers safety, look at the operators manual for the best advice on personnel safety wear and use. These machines can produce a very powerful jet of water capable of ripping through clothing, skin and even break small bones.  You should always wear goggles, leather gloves, and steel toe leather work boots with nonskid soles.

Stucco & wood siding is especially susceptible to damage when using a power washer. Use the lowest setting and wide spray nozzle to avoid damage.  Lightly mist stucco surfaces if cleaning is your objective. Keep nozzle adjusted to spray not stream and approx. 2’ to 3’ away from the surface.

As with most things, proper training will help insure safe usage of power tools.

Bio:

Please call: Buffalo Maintenance, Inc for maintenance work or consultation.  JLE Property Management, Inc for management service or consultation

Frankie Alvarez at 714 956-8371   Jerry L’Ecuyer at 714 778-0480  

CA contractor lic: #797645, EPA   Real Estate lic. #: 01460075 Certified Renovation Company   

www.BuffaloMaintenance.com    www.ContactJLE.com   www.Facebook.com/BuffaloMaintenance

New fire legislation would require more communication from landlords

Written by Landlord Property Management Magazine on . Posted in Blog

legislative updateSource: missionlocal.org

San Francisco Supervisors David Campos and Jane Kim on Tuesday introduced legislation intended to protect tenants in the event of a fire by requiring that landlords keep the city informed of safety standards within their buildings.

The legislation would also require that all buildings be outfitted with smoke detectors and loud alarms. It would mandate that landlords file reports with the Department of Building Inspection to keep tenants informed of any reconstruction progress.

Campos made the announcement in front of a fire-ravaged building at Mission and 22nd streets, which has now suffered three fires, the most recent one on Monday night. The building has become a symbol of landlord negligence – after the building decayed for more than a year, the city issued an emergency alteration order to bring the structure down to ground level.

“I don’t know how it is possible in San Francisco that a building like this catches fire three times,” Campos said. “You have a community that feels that it is under siege.”

“The most devastating part of this experience has been that it is often our most vulnerable tenants who are affected by fires,” said Kim, who co-wrote the legislation.

The proposed legislation comes out of a set of recommendations made by a fire safety task force in November 2015, including that fire alarms be loud enough to pass the “pillow test,” meaning able to wake sleeping tenants. Fire alarms in the Mission and 22nd streets building, however, failed to sound at all.

It would also require smoke detectors in each dwelling unit. At 22nd and Mission streets, some tenants said they had disconnected smoke detectors because of the high incidence of false alarms, while fire inspectors said they did not have the authority to enter anywhere other than common areas to inspect for working alarms.

Tenant advocates and lawmakers alike have cited difficulties in communicating with landlords after a disastrous event like a fire. One couple, Fernando and Carmen Chamorro, who lived at 3045 Mission St. for 12 years was displaced when a fire broke out on the ground-floor restaurant and severely damaged their unit above. They have been homeless for the four months since the fire, living in their car.

“This is painful,” said Carmen Chamorro. “It’s something you can never imagine that something like this would happen.”

Chamorro said she has sent the landlord several letters but has heard nothing about the state of her building or whether she will be able to return.

City agencies have the same problem.

Dan Lowrey, an inspector with the Department of Building Inspection, told the Building Inspection Commission in mid-March that the property owner is responsible for making sure nobody enters the fire-damaged building. After the first fire at Mission and 22nd streets, he said, notices of violation were issued to both the corner building and the adjacent building on 22nd Street, which suffered some fire damage on the roof and some water damage.

“We do have to follow the code enforcement process. We were getting in touch with the owner and he stopped responding,” Lowrey told the commission. “We sent district inspectors by but the property was boarded up.”

Under the proposed legislation, landlords would have 72 hours to give the city updates on how they have secured the property and how they expect to allow tenants back inside to retrieve belongings. Within a month, the landlord must submit a plan of action for repairs and offering re-occupancy to displaced tenants, who legally have a right to return at their previous rent.

“After a fire, it’s really important for us to get the information. A lot of times we get property profiles as an LLC. We have a lot of issues after a fire getting hold of the owner,” Lowrey said.

Tommi Avicolli Mecca of the Housing Rights Committee said the action plan requirement would be a particularly useful tool.

Often, he said tenants are “terrified. They’re hurting. They can’t even get to their belongings.” But he also added that “tenants need to assert their rights under this legislation.”

Our Mission No Eviction activist Roberto Hernandez voiced his frustration with the fire department over what he called insufficient investigation into fires and a tepid response to his repeated requests for a Fire Commission meeting in the Mission to address local fires.

The commission has set a meeting at 362 Capp St. for 5 p.m. on Wednesday, April 27, though Hernandez said he was disappointed to learn that Fire Chief Joanne Hayes-White would not be attending.

“How is it possible that we have a fire chief who cannot be with us when we are having a crisis in the community?” Hernandez wanted to know. “We’re getting murdered, we’re being burned out, and we’re getting evicted.”