Multifamily Blogs

In 2004, during a season of change in my life, I decided to leave my job in the mortgage industry and had a major decision to make. I had a job offer from a large retail company, offering me a management position. But, after working in retail for over a decade, I didn’t really want to return to that field.    At the same time, I had a series of interviews with a property management company for a leasing consultant position. I thought my interviews went well, but I hadn’t heard back from the company when I got the message from the store manager offering me the retail management position.    Did You Think You Would Be Here?   As you may have guessed I turned down the retail position and waited for the call from the property management company-which finally came. And almost ten years later my life has been changed in so many ways, all because I chose to enter the multifamily industry.   We all know that most of us in multifamily did not choose to do so as part of some master plan. We come here from many different directions and with many different stories. Some people stay for a short time, while others (like me) end up hanging around for years. Now that I have fully transitioned to the vendor side of the industry, I can look back on my time as in “insider” with great fondness and appreciation.    Here are some of the things...

This is a good time for the property management industry, nationwide trends in the real estate arena show that the housing market is in a recovery model. In our industry (property management) we noticed an influx of foreign and national investors with an aggressive acquisition strategy from coast to coast. As the market increases momentum we see real estate news labeling the trend as a “seller’s market” creating a shortage of supply in desired metropolis and sub-markets. What does that mean for the property management industry? It means a new generation of owners with a different dynamic and perspective driven by the influence of social media, opening new innovated ways to doing business demanding a higher level of customer service and transparency in the management process. Also the makeup of the ownership is not necessarily guided by industry experts but more so of young savvy business minded individuals and groups looking to maximize the return of their investment long term by studying the current trends in the market and by doing without past trends such as house flipping which is still common but may not be so desirable for some owners looking for higher returns on their investments. What are some trends that you are seeing in the realestate world? Here is a great infographic from Andy Fulton of Real Estate.Com . Read more of his great article here.   By Marilyn Viruet, our COO and President of Maysonet Group.  Connect with her on Linkedin.  ...

Governor Brown's 2013-2014 budget could prove catastrophic to California's property management companies, real estate agents, landlords and employers if passed as currently proposed. The budget includes a "per case" search fee for criminal and civil court records which will create an undue burden on California businesses and increase the threat to public safety in the rental housing community. The average number of eviction cases filed in California each year is 140,000. At $10.00 per case, that is $1.4 Million in added costs that public records search firms will have to share with their clients (you). That dollar figure does not include criminal cases which will increase that amount many times! The potential cost of screening rental and employment applications may increase in the millions. Individual landlords and businesses in California already burdened with limits for tenant screening fees and high business taxes may elect to forego the screening process altogether rather than pay the increased fees, creating obvious safety issues for their communities and/or workplace. Please take the time to contact your local legislators. This budget item cannot be allowed to pass!...

No, we’re of course not implying that being a community manager is a waste of time. The question is are you wasting valuable time in your day-to-day responsibilities as a community manager? Are you falling further and further behind because your methods and protocols are unwieldy and out of date? Are issues that arise taking twice as much time to resolve as they should? Well then, it’s time to take action. Here are some ideas to consider. The one-man-show. A lot of folks get into community management by themselves and take on all the responsibilities by themselves and stubbornly go down with the ship by themselves when it turns out they’re completely overwhelmed. Realizing that you need the extra help and raising your hand to get it are two crucial steps that can mean the difference between success and failure in your community management venture. Don’t be too proud to bring in one or two folks to whom you can spread the wealth. Focus on what you do best. If you’re a talented community manager, then be the best community manager you can be. If you’re terrible when it comes to self-promotion -- including optimizing your website, getting the word out about your property, etc. -- find someone who’s really good at those things and hire them. You don’t have to bring them into your organization -- you can easily find a freelancer who can handle all of those responsibilities for you. It’s well worth the investment. Trying too many community management software programs. This...

It is now official and the new transition period begins. What happens now? How does your onsite team get through the transition, the time after saying “good-bye” to what was known and comfortable and the time before the new rules, regulations, and policies take effect? The first days of the transition are critical to the success of the takeover or acquisition and the installation of the new management company. Without some plan the success will be overshadowed by the turmoil, the upheaval, and the uncertainness of the transition.   Any time a new management company is employed and tasked with turning around an asset, whether or not it is a troubled one, there will be a level of unrest for the onsite team – even when the change is actually a welcome relief. For those teams who were winging it with a wing and a prayer and are now happy to be in receivership, the thought that there will be some order to the chaos will help them breathe a sigh of relief. For those teams, however, who are being dragged kicking and screaming into a new management company, the change will not be so much welcome, as it will be fraught with mistrust and uncertainty. And finally, for those teams who are expecting the new management company change, there will be a period of adjustment.   If you are an onsite team in just such a situation, please read this carefully. This period of time will separate the seriously committed...

So I’m at the NMHC Market Research Forum in Boston this past week to sit on a panel/workshop on revenue management. Mark Obrinsky, who heads up Market Research at NMHC and has been a good friend and colleague for roughly decade brings up an interesting question: “(paraphrasing) So what do you think about longer lease terms? And by longer lease terms, I mean 3-, 4- or 5-year leases.” He hypothesizes that there’s a latent, older “renter by choice” demographic that could be tapped, particularly in urban markets. The theory is that these folks would choose to rent but for the fear of unknown and thus uncertain future rent increases. I’m of the opinion that this is probably not a good idea for reasons illustrated below, but I think it’s a provocative concept worth at least discussing. In the “nay column”: A long-term lease, even with rent escalators, is essentially a put option for the resident. That means we commit to a maximum price and likely take all the risk. This is particularly true since residents can relatively easily opt out of the remaining months of a lease with little to no cost—either legally but paying a pre-determined lease break fee (typically a month’s rent) or illegally by simply skipping. It tends to be difficult, if not impractical, to hold a resident to the remaining term of the lease. But maybe there is a way to structure a lease of this type so that we could hold the resident responsible? If we...

Sure, most of us have at least a general idea of what to share with our Facebook fans and Twitter followers, but have you given any thought to what you should NOT share with them? This topic was recently brought to light thanks to an Arizona restaurant’s epic Facebook meltdown after being featured on Gordon Ramsey’s hit show, Kitchen Nightmares. After receiving heat from Ramsey about their business practices, the owners took to Facebook, criticizing not only the show, but also customers who gave unfavorable reviews on Yelp, Facebook, and other sites. What’s the lesson here? It’s great to share your company’s personality on Facebook and other social sites, but a line needs to be drawn. Addressing customer criticism in a constructive way is great, but if you or your company is taking to social media to lash out against critics, it will only end up hurting you in the long run. To read snippets of the Facebook meltdown, click here....

I look to the sky, and wait for an answer!   "When will my toilet be fixed, and has my request to move my assigned parking spot even been looked at?"   For most residents on most days of living in an apartment community, the routine is simple: They wake up, they go about their daily obligations, they may fit in some leisure activities, they go to bed.  But then there are those certain days when their routine gets derailed, in large ways or small. A burner on the stove stops working. They receive a late rent notice. Someone parks in their assigned spot. There is dog waste outside their home for the 3rd day in a row.  That is when residents look to their property management teams for help. For answers. For solutions.  Do they raise their hands in futility as they wait endlessly for assistance, or do they have confidence that the team will listen and help immediately?   These are the moments of truth. These are the memorable moments. And YOU have the power to make them memorable in a really good way, or a really bad way. Either way, keep in mind that it is very likely that that memory you make together will be broadcast across the world wide web within minutes.  So, how do make your interactions divinely memorable, worthy of a virtual thumbs-up? Respond! Whether a resident calls, emails or stops by, really listen to what they are saying or asking. Let them...

When you’re a landlord, managing your own property or properties is a way to keep your costs low, and it allows you to turn a larger profit from your rental. However, over time you may start considering the option of hiring a property manager to take over for you – whether it’s due to time constraints, a desire to focus on other projects, or simply a feeling that you’ve taken on too many investment properties to do it all on your own. Regardless of the reasoning, you should think through your decision carefully, and part of doing that is understanding what a property manager offers you. What Do Property Managers Bring to the Table? Fast response time to prospective tenants – if you’ve got another job and maintain your rental in your spare time, you may not be able to get back to people as quickly as you need to. There are tons of rentals on the market, pretty much at all times. If you don’t contact someone quickly while they’re waiting for information, someone else might just snatch them up. A higher level of objectivity when dealing with difficult tenants – if there is an issue, it’s easier to take it personally when it’s your property. After all, you’re the one that has to come up with the cash if your tenant fails to pay their rent on time, for example. But working with a property manager means that the issue can be dealt with in a way that avoids...

I wouldn’t hesitate in characterizing myself as a “good person.”  I’m no angel – probably a little closer to an upbeat cheerleader devil who tells you that you are great when she thinks you are great, and struggles with the already tiny filter between her brain and mouth when she thinks you’re not.  Usually, these momentary slips, frequent as they are, come in good humor and are not mean-girl-esque.    This morning, I had a mean girl moment that I’m wildly ashamed of.     See, given the nature of my job in training, consulting, and speaking, I travel frequently.  I can tell you where to get the brand of yogurt that you want in the SeaTac airport or the best spot to build yourself a productivity nest in the A Concourse at Denver International.  I can almost always pack my suitcase to the 50lb mark without going over.  I remember flight attendant names.  And, most importantly, I can go through the security line with breakneck speed.   2 bins, bag in the first, pull out the laptop –it goes in the second, jacket off before I get to the table so it’s already in the first bin, slip out of the flip-flops, and I never have anything besides lint in my pockets. “Any liquids, Ma’am?”  No.  Liquids at the TSA line are for chumps.  I don’t do the backscatter machines, but that’s why I scout the line with the metal detectors or I opt-out for the “federal feel-up.”    It’s an art form,...