Property Management Software

A guest post by Ashley Halligan, Analyst, Property Management Software Guide

Short-term rentals, of all natures, have become a hot commodity – and a controversial one at that. Short-term rentals can include vacation rentals and temporary housing, often sought by vacationers, business travelers, or people who have recently relocated while seeking long-term living arrangements. Either way, it’s become an ongoing topic of debate and an attractive investment opportunity for property owners and managers. In comparison to traditional rentals, short-term rentals can charge significantly higher rates given their nightly and weekly availabilities. Some property owners have earned as much as 25% of their mortgage in a single night. And during special events or peak rental periods in a given area, potential rental rates can be very attractive to property owners. Because of the income short-term rentals can procure, the opportunity for profit potential may be exponential – but there are several considerations that should be kept in mind.

First and foremost, it’s essential to keep the added costs of maintaining a short-term rental in mind. These rentals can be subject to Hotel Occupancy Taxes in certain cities, while other cities require specific licensures and inspections not required of traditional, long-term rentals. Penalties for not abiding by short-term rental laws in your city may result in hefty fines. There can also be increased insurance costs. Additionally, the cost of regular upkeep and maintenance, including utilities, should be calculated. In order to continually attract tenants, your property must be kept in prime condition, both functionally and cosmetically. From a marketing perspective, this could include offering unique amenities like sporting equipment or movie libraries, all of which are additional expenses. On the flip side, the regular maintenance of these properties has been credited with helping to increase neighboring property values.

By Ben Holubecki, STML Realty Group, Glen Ellyn, IL

One area that really took a hit during the economic downturn over the past few years was the ability to lease property to employees being hired and transferred. Nobody was hiring, and it seemed that very few companies were taking on the expense of transferring their employees to other markets. Although the job market continues to stagnate, overall it does appear that in many markets companies are beginning to add staff, and once again we are seeing an influx of transferring employees and executives.

By Salvatore Friscia, San Diego Premier Property Management, San Diego, CA

Property management is all the buzz these days, as it is becoming the saving grace of the real estate industry. Across the country, real estate agents and realtors who are unable to maintain consistent listings and sales have turned to property management as a steady income stream until the market “picks up” again. This increase in competition for property management accounts by quasi real estate agents/managers has lead many who want to build their property management portfolio to take on any and all assets.

By Ben Holubecki, STML Realty Group, Glen Ellyn, IL

One of the most important and difficult things to do as a professional property manager is to honestly assess your strengths and weaknesses and build your business around the part of the business that you do best. For those outside of the industry, a property manager is a property manager, and few people can or care to make any distinction between an HOA, multi-family, or single family manager. There are also few who make any distinction between competent professionals and slum lords.

It is not surprising that the general public can’t grasp these differences. What is surprising is that many of us as property managers and landlords can’t even make this distinction within our own companies and portfolios. I’m not pointing fingers here, as my company was as guilty as any other only a couple of years ago. Our management portfolio consisted of hundreds of single family units, multi-family buildings ranging from the worst of areas to the best, multiple commercial properties, as well as some associations. We had spent years building up our volume of managed properties without any regard for the type, quality, or location of the properties that we were taking on. We were happy that our unit count was growing steadily, but no matter how many units we added, it seemed that we were not making any additional profits month over month. It was frustrating, to say the least, so we made an effort to find out what the issue was.

A guest post by Andrew Payne, Louisville Property Management, Louisville, KY

Whether you’re listing a property for the first time or the tenth, it’s important to confirm that your pricing is market competitive. Setting a proper rental rate ensures that you’ll attract plenty of customers to the listing, while also being able to maintain a high standard of tenant screening. In my property management company, we seek to set the rental rate in such a way that maximizes both interest and profitability. Here are some of the methods that we employ.

A guest post by Michael Gonzalez, Melrose-Sovereign, Orlando, FL

When you live in a condo association, you are guaranteed certain property rights. With good property management, your rights are guaranteed in your governing documents, and one of the most important of these is the definition of “Common Elements.” These elements constitute all of the community that is not included within the units (hallways, lobbies, elevators, etc…). “Common Elements” also include easements through units for conduits, ducts, plumbing and wiring. These rights are common in most condo associations, and they are often not fully understood by their residents. We have recently come across a situation that represents this.

A cable company violated a resident’s property rights by drilling and running a television cable through the closet on their balcony. The cable company said that they were given permission by the condo association board, however, the closet on the resident’s porch is not technically “common space.” The closet is considered part of the unit as defined by the association’s governing documents. The resident’s cable was violating the property rights of the unit below them and their property rights were being violated by the unit above them. When the resident questioned the cable installer about it, he simply said that the association board gave him permission to do this. This is a violation of the owner’s rights because the wiring that was being installed was obstructing the resident’s use of the closet, so they demanded that the cable be relocated. The previous television cable was run through the walls, which is a much more aesthetically pleasing solution and does not violate the resident’s property rights, as the walls are a part of the “Common Elements.” The owner was eventually able to get the cable relocated and the association board apologized.

By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia

Are you in a position to create your own bonus and incentive plan that strategically builds your business, not just your property manager’s pocket? Successful bonus and incentive plans are all about understanding your team at an individual level, your agency’s business plan, and your market area. So, this week, let’s take a look at how understanding these critical factors converts to a bonus and incentive plan where all parties- the team member, property owner and you, the business owner- win now and win in the long-term.

What happens if, for instance, the average weekly rent in your market area is $300 and the property manager has a target of five new managements per month? The property manager could in fact reach the target of five new managements, but the five properties average only $200 per week. The problem – the property manager’s focus is on numbers and not quality.