Property Management Software

Last week Blackberry/RIM and Best Buy were two businesses that went on a list of dying companies.  It's often hard to predict what the future holds, and we have a tendency to get tunnel vision when it comes to our own businesses.  It's unfortunate these companies have found themselves to be in dire straights, but for me I look at situations like this as an opportunity to reflect on my own business and industry. What may look like a solid model today, may not be tomorrow.  With that, I'd like to share my list of five multifamily marketing/tech models that may be in trouble.

1. The ILS - I've actually been known to say that the ILS is an absurd marketing idea.  While I may have been trying to generate some controversy with that statement nearly 3 years ago, it's interesting to think today I actually believe the ILS model is in trouble a bit.  At least the way the big players look today.  If you look at Apartments.com, ApartmentGuide.com, ForRent.com, Rent.com, Move.com, etc., you'll find their models really haven't changed much since they started.  However, the way people search online is changing.  We may see a few fall off over the next 5 years if they don't evolve in an aggressive way.

2. Pay Per Lease Marketing Model - As tracking becomes more sophisticated we're finding (and concluding) renters are using more than one source to find an apartment.  Is it fair to give all the credit to a single source and pay them a premium for it?  I say NO FRIGGIN WAY!  Marketers are getting smarter and this model is a gimmick that has taken advantage of people for too long.  I think this fad will most definitely pass in the near future as pay per lead or flat subscription pricing will win.

A guest post by Samantha Harvey, General Waste Collection, Lancashire, United Kingdom

With sustainability becoming more important to the general population, there is an ever-increasing necessity to provide eco-friendly properties. The rise in popularity of green technologies has led an industry that was once seen as expensive and niche-based into one that has competitive prices for many aspects of the building process. With the decreasing initial price disadvantage combined with the always present efficiency positives, the green movement presents a good deal of incentive to implement more eco-friendly resources. With the majority of greenhouse gas emissions coming from buildings, incorporating sustainable processes in homes is vital for curbing the impact of global warming.

By Linda Day Harrison, Manager Labs, Chicago, IL

There are business models in all shapes and sizes. There are retail stores, medical and legal practices, cleaning companies, general contractors, grocery stores, etc. So when you think about a business, how many business models do you know of where the business owner outsources the entire business to another party? For instance, if you visit your local grocery store, is it managed by a grocery management company? How about a retail store management company? So what makes the residential real estate investment business any different? Why are there so many property management companies and outsourced service providers to the property industry?

According to a colleague of mine, the answer is quite simple, “It is not easy, there is so much at stake, and there are many moving parts.” Also, when you think about properties as investments, there are often multiple partners and joint venture groups who own the assets. In those cases, the managing partner realizes they do not have enough time or expertise to do all of the functions required of them to maximize the value of the asset. That is what outsourcing offers.

By Phoebe Chongchua, SD Real Estate Help, San Diego, CA

It’s the kind of job that requires a lot of patience, and today being a property manager also requires keeping up with technology. Property managers work with many different personalities, which requires them to have some important skills that help make the job of managing properties a success. But they also need to keep up with where their future tenants are spending their time–online.

Get Social.

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

For property management companies, the month of January signals a time to prepare and issue year end statements to their clients for tax preparation purposes. Consequently, each January the IRS requires that any taxpayers who have made payments in excess of $600 to workers that are not considered employees must prepare Form 1099 – Miscellaneous Income. Property management companies are also federally required to file Form 1099 for their clients regarding rental income received throughout the year. In addition, copies of this completed form must be provided to the IRS. The IRS compares the payments shown on the information returns with each recipient’s income tax return to determine whether the payments were reported as income and done so properly.