PropertyManagementMaven: March 2010

SHOWTIME is to sponsor the NASCAR Sprint Cup race in Darlington, SC on May 8th.  SHOWTIME started is "Inside NASCAR" program with the season coverage in February and Ken Hershman, executive VP of Showtime Sports indicates that the NASCAR race sponsorship is the next step in linking the network with one of the country's most popular sports.

Learn what skills are needed to be successful in property management. 

Property management is often in demand when the brokerage side of business is slow. However, success in this specialty doesn't come easy. Here are the skills you need, experts say.

Commitment to customer service. You need to respect your tenants and empathize with their concerns. 

WSG * Being able to discuss concerns with both tenants and owner/clients so that they understand the situation is CRITICAL to being a successful property manager.

Sense of balance. Managers serve the sometimes conflicting goals of the owner and the tenant. Being able to keep the two in balance makes for a great manager. 

WSG * Owners rarely want to hear the tenants' side of an issue and tenants rarely have the knowledge or experience to understand owners' concerns so property managers need to be able to discuss each party's issues with the other. 

Staying cool under fire. Whether they're dealing with broken water pipes or owners' budget questions, managers are always on call. 

WSG * Planning for the WORST and praying for the BEST should be the motto of property managers worldwide.

Ability to sweat the small stuff. Accounting for every dollar and knowing every inch of a property are part of the job.

WSG * The "small stuff" becomes the GIGANTIC STUFF if it is not addressed and handled quickly.

Willingness to listen. Serving tenant and owner goals can't happen unless you learn what all of the stakeholders really want. Talk less; listen more.

WSG * And I would add to know which questions to ask which again comes with expertise and experience.

Courage to address small problems before they grow. Whether it's fixing a leak or warning a tenant of an inappropriate behavior, managers have to act quickly and decisively.  WSG * These types of issues rarely resolve themselves.  Handling them quickly with proper documentation and procedures is to everybody's benefit.

Confidence to lease successfully. Except at very large properties, showing space is an essential part of the manager's responsibilities. 

WSG * Being prepared to show properties quickly * with application and property information paperwork on hand * SAVES time and $$$ for the property manager and property owner.

Objectivity. The tenant in 2A may remind you of your mom, while 3C seems like a potential prison inmate, but you have to apply the same rules to both. Other-wise, you're asking for a lawsuit. 

WSG * Everybody gets the same treatment, courtesy and consideration * EVERYBODY * at ALL TIMES.

Education. Keep your knowledge sharp. The Institute of Real Estate Management, an affiliate of the NATIONAL ASSOCIATON OF REALTORS®, offers virtual seminars, online courses, and books for managers. 

WSG * There are numerous property management designations and many property management courses provided by Realtor associations, apartment associations, community colleges and suppliers and vendors.  Getting as much of this information as possible is to EVERYONE'S benefit!

Congratulations to Denny Hamlin of Chesterfield, VA * Driver of the #11 FedEx Toyota for Joe Gibbs Racing....He stayed up front all day, took 4 tires 10 laps from the finish, started 3rd on a 4 lap shoot out and booted Matt Kenseth and passed Jeff Gordon to win.  NOW, he goes in for surgery Wednesday for a damaged ACL.

SURPRISE!!!  Jimmie Johnson is now LEADING the NASCAR Cup championship points!!  Denny Hamlin is now 15th in the standings.

One of the things that rental property owners and small landlords always think is that the tenant automatically KNOWS what to do when they are moving from their rental property.  This is not the case.  Property managers know that you can NOT reinforce the process too often. 

About 2 months before the lease ends, confirm the move-out date AND time....a DAY is 24 hours so the EXACT time that they keys need to be returned is important.  My leases end at NOON on the last day of the lease.

About 3 weeks before the lease ends, send out a confirming move-out letter with ANOTHER copy of your move-out cleaning instructions AND a list of approved house and carpet cleaners and yard services.  Instructing residents what to do with their trash helps keep the neighbors from calling you that their toter can is on the street or overflowing.

5 days before their scheduled move out date, I transfer the property utilities into my company name so there is no interruption of service.  I keep AC on in the summer and there is water in case cleaning or painting needs to be done.

My leases end on the 3rd Friday of the month so if the tenants clean as they should, have their trash removed on schedule and return their keys to my office by noon on the day their lease expires, I have a week or so to prep the property for the next residents......replace carpet, repaint walls, power wash the exterior.

Once the house is fully prepared for the next residents, I RETAKE my marketing photos to show the bright new paint, new carpet and shiny new exterior.

The day before the new residents are scheduled to move in, I install new toilet paper in the bathrooms, put a NEW front door mat at the front door and place the property keys under the mat for the next residents’ arrival!!!

This is GREAT information * thank you

I think this is a GREAT explanation as to some thinking of tenants. I recently had an e-mail from residents who want out of their lease and they started by calling me rude and unprofessional because I did not see their way....I'm GLAD there is a term for their thought process!!

Forest Lakes is an EXCELLENT example of where investors can get BANG for their investment BUCK!!! Rents have increased steadily for homes in the area over the last 3 to 5 years!

There are keys and then there are KEYS!!!  One of the MOST IMPORTANT things a new property manager learns is the VALUE and the MEANING of keys.

The First thing we learn is that keys equal possession.  Once the paperwork is complete and monies are paid, the new residents get keys to the property they have just rented. Hooray!

The Second thing property managers learn is to NEVER give the only/or all of the keys to the residents.  Keeping a file set or 3 is ALWAYS good idea.

The Third thing a property manager learns to do is to put a hidden keybox on the property.  I have then on porch or deck posts for use if residents lock themselves out of the property or emergency entry is necessary without a trip to my office.

One of the BIGGEST and most COSTLY mistakes property owners do is to give all of their keys to their new tenants and not retain a set.  While many homeowners operate with 2 or 3 sets of house keys, having MORE keys for various different reasons is an unknown pitfall when they become a landlord.  When they give all of their property keys to their tenants and their tenants turn surly, they have a legal situation if they need access.

Having extra keys to the property AND a NO ALTERATION clause in the lease prevents a lot of headaches and mi$take$ during the tenancy.

Every year I have tenant prospects cry * usually around April or May * and usually because they waited too long to make an area home selection OR they listened to a real estate agent who told them there would be MORE rental housing inventory in the summer and there are actually LESS homes for rent because of increased and EARLIER demand.

April 1, 2009 * I had 40 homes and townhomes available on my website for rent in May, June, July and August.
April 1, 2010 * I will have 25 homes and townhomes available on my website for rent in May, June , July and August.

I increased rents for the majority of my current rental residents and 2 are buying homes and 5 are leaving the area....the remainder of my residents agreed to the 5% to 12% rental increase and will remain.  Of the 25 homes and townhomes available for lease this summer * the are ALL LISTED at the SAME or HIGHER rent than the current residents are paying.

The incoming residents to the University of Virginia Medical School "matched" last week.  So far, over the last 3 days, I have rented 5 homes sight-unseen and I have advised prospects that are not coming to make their selection until May that they will have fewer properties to make their selection from AND the rental rates will increase as the summer approaches and inventory disappears.!

So Mr. & Mrs. Tenant Prospect, the property you had your agent call me about  * three times instead of researching available homes on my web site * is LEASED.

I keep hearing about homeowners OWING more than their home is WORTH and their first or second mortgage need to be adjusted and payments reduced from their agreed amount.....and my question in WHY?

I just wrote a 13 month residential lease for a property and the ENTIRE amount of rent monies owed for the term of the lease is almost $30,000 * there is no appreciation potential, no IRS write-offs and there are LOADS of rules in my lease.  My new residents' lifestyle is considerably curtailed as I limit the number of pets at my rental properties AND they can make no alterations * no painting for the nursery, no redecoration, no fence installation, no appliance upgrades.

So.......why is owing MORE than the home is worth any MORE of a lifestyle decision than signing a 13 month lease costing $30,000?