PropertyManagementMaven: October 2008

As a frequent contributor to several landlord websites, I am surprised at how many landlords never take photograps of their property - either inside when it is vacant or exterior pictures when the flowers are blooming and grass looks GREEN.  They don't make it a PRIORITY which it should be.

With the arrival of Craigslist as A MAJOR if not THE MAJOR rental housing website, inserting 4 pictures in a FREE listing should be a no-brainer.

I've been collecting interior photos and having floor plans done for almost 6 years (my husband uses a program called Home Plan PRO to do the floor plans).  Everytime carpet is changed or property is repainted, I take new photos and store them on a 4G jump drive in a folder with the property address and sub-folders for updated photos by the year.

When properties have gone on the market for sale, I have offered my photos and floor plans to the listing Realtor.  In the "olden days", few bothered with uploading these to their co webside or our local MLS as properties sold so FAST.

NOW.....the tide has changed, and this marketing material actually has a VALUE in the marketing of real estate.

Many MLS services nationwide are having the discussion as to who owns this media once it is uploaded into their service.

I maintain this media remains mine.  The client/property owner did not pay for it and just like my car, my computer and my cel phone, it is a tool I use in my business. 

Property managers should not dismiss the value of this marketing media. 

We have a very robust rental market in Central Virginia....many area home sellers are being transferred to other locations for employment and leaving un sold homes to be rented by local property managers and sometimes their unsuccessful selling agent.

With this increase in rental home inventory, why have only 1.5 new property management firms been created over the last several years?  One firm is actually a long-time home builder who has accummulated a rental inventory of several hundred duplexes over the years.  They have stopped building homes, laid off their workers except for a slim staff who deal with their rental units.  The second firm is actually 2 gentlemen who I have known for years and who started their own property management firm 2 years ago.  I am mentoring them with forms, software, procedures, etc. and they have accummulated almost 100 units in less than 2 years from scratch.  After I choose the properties I get prospect calls on, I refer callers to this new firm which has greatly increased the property inventory.

If I am getting 3 to 4  calls for prospective owner clients with no yellow page ad, virtually no newspaper advertiging and few rental signs out as most of my properties have rented, I suspect that these client prospects are finding me from my daily listings on CL.

I can only imagine how quickly someone who has a modest advertising budget, knows how to farm for rental property owners and has basic knowledge of VA landlord-tenant laws could establish a property management firm in the current housing market.

Watching TV and seeing the Angie's List ad for the flooring guy who took twice as long to perform a job because he was watching pay-per-view on the customers' cable made me realize that how our service firms treat our residents is very important to the bottom line of our business. 

This should be a no-brainer; however, sometimes we need to remember to stress considerate and responsible behavior to our residents with our vendors and service personnel....whether they are inhouse or third party vendors.

I'm preparing my S/A resident contact list to provide to my HVAC service firm so they can perform the fall HVAC service.  They contact the residents directly - either via e-mail or phone - advising them when service will be done and then they use the unit keys I provide to perform the service.  They leave additional furnace filters for residents if none are at the property and they are very neat and clean.

When making a property management property presentation, I stress to owners that I while I will use service personnel familiar with their property if they desire, the first time there is an issue with scheduling or inconsideration for OUR residents, I will use my service firm(s) in the future.

I recount a situation that happened to me last summer.....A property owner had a local service firm perform the summer HVAC service before they left the property and a week after OUR new residents moved in, the AC went down in 90+degree heat.  I called the service firm they used only to be told that they could not schedule a service call for 4 days.  I called my HVAC service firm and was told that they would be at the property that afternoon. 

Finding and supporting these types of vendors is crucial to the success of a property management business.  Our residents stay longer and our clients enjoy knowledgable service personnel maintaining their investment.

Just this week, I've had 5 phone calls from property owners who are considering renting their unsold homes...3 home owners have already left the area and 2 are leaving in a few weeks.  During these phone calls, my interview questions are different than those I ask an investor owner.

First I want to know how long they expect to hold the property * I only have 2-year management agreements so if they think they can put a tenant in for 6 or 8 months, that is not long enough for me to take the property for management.  Then, I want to know if they have an expectation of a rental rate.  If their sales agent quoted an unrealistic rental rate, I'll need to talk them down from that figure which will take time and energy.  If they indicate they want to hold the property for 2 to 3 years and ask ME to provide a rental rate, they move to my "prospects" file.

Then I research the property on the local MLS and offer a suggested initial rental rate based on the time of year the property will be marketed (our area has a strong market for new-hires moving into the area wanting smaller homes or town homes.  Prospects for larger homes rented before school started).

If the property is vacant and still listed for sale, I may use my MLS lockbox key and preview the property.  If the property is still occupied, I'll drive by and check the curb appeal and arrange a time for me to make a management proposal presentation with the owners.  Depending on their schedule, I may send this proposal via USPS Priority Mail so hat they can review it first.

If the owner is no longer in the area, I'll send the management proposal and agreement in PDF via e-mail.  I do not have this information on my website since I often require greater initial owner deposits depending on the potential for getting residents in quickly.

I always provide a SASE with 2 copies of my management agreement to make it easier for the clients to return the signed management agreement and their initial owner deposit check.  If the agreement is returned without the check, I'll notify the owner that I will not gegin my "marketing efforts" until their owner deposit is received.

By determining the owners' expectations up front, I don't waste my or their time if their desires for their property do not fit my management program so that we both enjoy the benefits of our relationship.

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