Author: Roy

By Sheila Eugenio

Source: Entrepreneur

Real estate has been a volatile market over the last decade, leaving many people wary of investing in residential and commercial properties. As a result, would-be investors are looking at the market differently and using new strategies to achieve success.

Technology has been a major factor in that shift, empowering investors to research their options remotely, compare and contrast different investment strategies through online tools and ultimately make transactions with limited professional help. Here are three trends that are helping to bring new investors to the space.

1. Data-driven investing.

As big data becomes more useful for the public, the real estate industry has been looking for ways to gather and present information that will help drive purchasing behavior. Bill Lyons is the founder and CEO of Revestor, a real estate search engine that provides data to help evaluate investment properties. “In the past, real estate investors needed access to the MLS, rental income data, expenses like HOA fees, occupancy rate, insurance, taxes, mortgage calculators and the sale price of homes sold nearby,” Lyons explains. “Then they would have needed to input all of those numbers into a spreadsheet to analyze the potential value of a property. Now you can do all of that with a few simple steps online.”

While data has been a hot consumer trend in other industries, real estate has been slow to catch on. In most industries, big data adds immense value, increases revenue and pushes the industry forward. In the case of real estate, however, professionals have less motivation to make big data available to the public because it infringes on their expert knowledge and value to the consumer.

But that is likely more perception than reality. Data-driven investing shouldn’t replace real estate professionals — it should help them become more specialized. “It allows investors to quickly analyze investments from a buy-and-hold perspective, utilizing a long-term rental or short-term rental strategy, or from a fix-and-flip perspective,” Lyons says. “Realtors can then market these investments to their existing databases and new prospective clients.”

Realtors empowered by a more comprehensive set of data can spend less time researching and more time selling.

2. Short-term rentals bringing new investors to the table.

As apps such as Airbnb and VRBO continue to grow in popularity, more and more people are looking to invest in short-term rental properties. Some experts are critical of short-term rental properties as investments because they operate differently than traditional holdings. Akira Mori, a Tokyo-based real estate expert, offers a different point of view. “In my experience, in the real estate business, past success stories are generally not applicable to new situations,” Mori says. “We must continually reinvent ourselves, responding to changing times with innovative new business models.”

Millennials are a group of potential investors that have begun to reinvent the real estate market. They are hesitant to purchase real estate because of the market fluctuations they lived through while they were young. But millennials are avid users of services such as Airbnb and consequently are drawn to investing in the same way. Since they are the generation that has driven the growth of the short-term rental market online, they have experiential knowledge of the industry.

A study from NAH revealed that 48 percent of millennials want to buy a home in the near future, but 53 percent of them would struggle with financing due to student debt. If provided with the data on potential returns, millennials may be willing to invest in a short-term rental property more than a traditional home.

3. Untapped potential.

The success of residential-driven applications demonstrates how much the industry can grow if it leverages technology to open up the market to new consumers. A report from the Federal Reserve shows that real estate is by far the largest asset for the United States, coming in at $40 trillion. There is enormous potential for entrepreneurs to create financial freedom by tapping into that market.

The key is leveraging technology in such a way that helps them consider all the factors involved so they can avoid purchasing a property that does not turn a profit. Additionally, the industry needs to continue to drive technological innovation by opening up the same kind of information and access for commercial investment properties.

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By Mark Abell

Source: Entrepreneur

In a rising interest rate environment, the cost of capital is edging higher for all small businesses, but especially those who need to purchase property. As a result, U.S. entrepreneurs are returning to banks in large numbers seeking to finance real estate projects.

In many respects the current business climate is perfect for an uptick in small business lending. Business optimism has reached its highest since July 2007, according to the Wells Fargo/Gallup Small Business Index, with a reading of 100 in February, up from 80 in November and 33 points higher than a year ago. Business owners are taking advantage of a better financial situation, enjoying increasing revenue, stronger cash flow and improving access to credit. Since the 2008 financial crisis, small business owners have relied heavily on loans with adjustable interest rates. After all, interest rates were near zero for almost a decade. Now that’s changing. The U.S. Federal Reserve in March increased interest rates for the third time since the financial crisis. While the Fed’s benchmark rate remains at a very low level, below 1 percent, the average interest rate on a 30-year mortgage has risen a half a percentage point higher over the last year, as has the U.S. Prime Rate, the benchmark rate for many small business loans.

Small business owners seeking to finance real estatemortgage loans, ranging from as little as $150,000 to as much as $20 million, have three basic choices.

Conventional commercial mortgages

The cheapest financing option available to small businesses are conventional mortgages. Banks will consider a conventional mortgage for a well-established firm with a predictable revenue stream. Business owners will need a down payment of at least 20 percent for a general use building, such as an office or warehouse building. For specialized-use building, such as a bowling alley or a hotel facility, banks prefer deposits of 30 percent. Startups without profits and firms less than two years old will generally not qualify for conventional loans.

These loans typically have terms of three to 10 years with payments based on a 20- or 25-year amortization and carry interest rates (today these are generally in the mid-4 to mid-5 percent range for most borrowers) that are fixed on the shorter term loans, but adjust after five years on the longer term loans. At the end of their term, these loans typically need to be refinanced into a new loan, which means you have the added costs of new appraisals, environmental reports and loan fees each time they refinance.

The 7(a) loan program

The Small Business Administration’s most popular loan has dominated lending while interest rates have been near zero. These flexible loans typically have an interest rate of up to Wall Street Journal Prime Rate plus 2.75 percent. Today that’s equal to 6.75 percent.

Borrowers can prepay the loans up to 25 percent each year for the first three years without penalty; and after that they can prepay as fast as they want without penalty. The interest rates on these loans often adjust quarterly, so rates will rise with each Fed move. On the other hand, monthly payments are kept lower because these loans have a term of up to 25-years. Businesses can put down a deposit of as little as 10 percent, although loans that exceed 85 percent of the property’s value may require additional collateral.

These loans are especially helpful for younger companies and rapidly growing companies that have cash constraints, but they have the added advantage of never needing to be refinanced and provide low-cost prepayment options for firms that want the option to repay early.

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By Rick Grossmann

Source: Entrepreneur

Recently, I have had several clients ask for some real estate tips and strategies, so I joined forces with my Franchise Bible co-author, Michael Katz, to develop a series of helpful articles. Katz is a franchise, business and real estate attorney and has been working with landlords and tenants for over three decades. This article covers the basics of square footage and triple net.

If you want to open a brick-and-mortar location, negotiating a real estate lease will be an integral part of your startup checklist. Like so many contracts, there are no “form” or “standard” leases, and a landlord can fashion any contract that it wishes. All of the leases, however, contain legal terms that are incomprehensible to the entrepreneur. The definition of a square foot is just one such term.

A square foot

Easy, right? A square foot (often shortened to “sf”) is a unit of measurement that describes a square that is 12 inches on each of its four sides. So, when is a square foot not a square foot? When it is a “Rentable Square Foot” or a “Usable Square Foot”. The Building Owners and Managers Association International (BOMA) is a recognized leader in all things having to do with building measurements and provides us with insight. Thus, a tenant’s Usable Square Footage is the actual amount of square footage of the premises leased. In turn, this is measured from wall to wall and includes closets, bathrooms located exclusively within the space, columns and other support structures (even though you cannot use such square footage), storage space and the like.

The Rentable Square Footage of the tenant’s premises is defined as the Usable Square Footage plus a portion of the common area. That portion of the common area associated with the premises is calculated by multiplying such Usable Square Footage by a fraction the numerator of which is the usable square footage of the premises and the denominator of which is the total usable square footage of all of the spaces available for lease. For instance, if the usable square footage of the common area is 300 sf (consisting of, for instance, a common hallway and waiting area) while the tenant’s premises is 300 sf and the total project is 1,200 sf of Usable Square Footage, the tenant’s obligation is determined by the following calculation: Tenant’s proportionate share of the common area = 300 x 300/1200 or 75 sf. That means that the tenant’s Rentable Square Footage (sometimes identified as “rsf”) will be 375. Thus, the commercial lease may require the tenant to pay rent on 375 sf instead of just 300 sf.

‘Triple net’ or ‘NNN’ leases

While some landlords use the Rentable Square Foot method as the measurement of choice for calculating the tenant’s rent, other leases use the Usable Square Footage of the space as the basis for calculating the “base rent” and then assess “additional rent” based upon the landlord’s costs to operate the entire project. These costs are often segregated into 3 categories (the “Triple” in Triple Net and the identity of each “N” in NNN):

1. Taxes assessed on the entire project
2. Insurance purchased by the landlord to protect the entire project (exclusive, however, of the interior spaces of each space, which is separately insured by each tenant)
3. Expenses to maintain the entire project (usually called out as “common area maintenance” or “CAM” expense).

A tenant’s share of the NNN costs, expressed as a percentage, is determined using the same formula as was used to figure out the Tenant’s Rentable Square Footage. Using the example from the previous paragraph: The tenant’s proportionate share of all of the NNN costs = 300/1200 or 25 percent; then, if the landlord’s yearly real estate taxes are $500, if insurance premiums are $250 per year and if the yearly cost to maintain the common area is $400, the tenant’s additional rent will be: 25 percent x ($500 + $250 + 400) or $287.50 which figure is added to the base rent.

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By Christopher Berkompas

Source: Manage My Property

A big part of a property manager’s responsibility is to oversee the ongoing maintenance of the properties they manage. This includes things like getting bids, making recommendations to owners, overseeing the work, and resolving complaints when services are not performed properly.

They typically are well connected with licensed, bonded and insured contractors who have been vetted for good pricing and work that is up to code. This built in network of contractors is one of the significant advantages of working with a property management company. Landlords who choose to self-manage may go through multiple contractors before they find one who shows up on time, does quality work and charges a fair price.

The formation of a preventative maintenance program is also one of the other significant a management firm can provide. This will insure that repair needs are addressed earl y on while they are small, and inexpensive, rather than neglecting repair needs and waiting till they become larger more costly issues.

Working with the right property management company can be a strategic move for many landlords. Keep reading for a list of questions for property management companies about how they perform maintenance and repairs.

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By Jordan Muela

Source: Manage My Property

No landlord ever wants to land a bad tenant, but regretfully all screening processes were not created equally. Applicants put their best foot forward and the more they have to hide the greater lengths they will go to hide facts that would eliminate them from consideration.

The screening process can vary widely from company to company so its important to find out just how much protection the company is going to provide you from what later turn out to be bad tenants. It only takes one eviction to drive home just how important this aspect of the management companies duties really is. In addition to the questions below, ask for a copy of the rental application they use to find out if its a generic document or custom tailored.

Get an idea of how much protection the management companies you interview will provide you with their screening process by asking the following questions:

Will they “hold” a property for a tenant, and take it off the market before a lease is signed? If so, do they charge a fee?

There should absolutely be a fee so that you are protected in the event that things fall through.

What systems do they have in place to protect against rental scams? Have they ever been duped by one?

Scams are becoming more widespread and more advanced. It’s not just Nigerian scammers, but local scammers who will copy your ad, break into your home, and show the unit so they can collect a “security deposit” and run. We’re not joking, either.

What methods do they use to screen tenants?

The more comprehensive the better. Former landlords should be contacted, income and employment should be verified, credit report run, application information verified for authenticity, personal references contacted, public notice (bankruptcy, eviction) search run, etc. There are so many tricks of the trade in this area and each manager will have their own time-tested methods. If they use a third party for tenant screening find out who and why they use them instead of doing it in house.

Which tenant qualifications are most important to them? Will they consider a tenant who meets their qualification is some areas but not in others?

Ideally, you want them bringing in people who are serious about their job or schooling. Remember that the less someone has to lose in life (money, family, career, reputation, personal pride), the less you can expect from them as a tenant. The eviction rate and tenant turnover rate on the properties they manage is a good indicator of how well they screen tenants.

Do they provide you with tenant information so you can approve or deny each tenant?

This may sound like a good idea but in reality it’s not. Tenant screening is what property management companies do, it’s what they should be experts at, and it’s what you are paying them for. If you don’t trust them to perform this CRITICAL function then you should not consider hiring them. When owners get involved in the screening process the possibility of discrimination (well intended or not) goes up significantly. Fair housing violations lead to lawsuits that can cost thousands. This is a significant liability both for you and the management company.

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By Jordan Muela

Source: Manage My Property

While every investors situation is different, there are certain scenarios and factors that typically pre-dispose owners one way or the other. The following questions are designed to help you determine if you should consider hiring a property manager.

1. How far do you live from your rental property and how frequently can you visit the property on a regular basis?

If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there is to not keep a close eye on things, and that can be a recipe for disaster. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, is this feasible for you?

2. How do you deal with stress? Do you consider yourself to be a tolerant person?

This is a tough one. We all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants:

• Get in fights with other tenants or neighbors
• Have domestic disputes
• Conduct illegal business in the dwelling
• Carry on all night parties and revelry
• Try to sneak extra people or animals into the home
• Decide to sue you
• Trash the property
• Incite the wrath of the HOA because of repeated deed restriction violations
• Refuse to pay rent because they are a “professional tenant” and know how to work the legal system for the maximum amount of free housing at the owners expense?

3. Are you currently overwhelmed with your property(s)?

Managing rental properties can become quickly overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand. Hiring a property manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

4. How many rental properties or units do you have?

As your portfolio grows so do the management challenges, and it becomes easier for things to fall through the cracks. Investors with large portfolios stand to reap significant benefit by leveraging the efficiencies a property manager can provide. Size can also constrain investors’ ability to consider purchasing new properties if they’re already maxed out managing their current holdings.

5. How much experience do you have with maintenance and repairs?

If you can’t do it yourself, do you know who to call? Finding reliable handymen and contractors can take a while and in the mean time you may unknowingly hire people that are unethical, uninsured, do poor quality work, over charge etc. Maintenance and repairs are a significant component of land lording and if you question your ability to ensure the work is done well and in a timely manner, you might want to consider hiring a property management company.

6. How quickly are you able to get your unit rented?

Advertising, fielding calls, and showing the unit can take a considerable amount of time, but are critical tasks as vacancies will quickly eat into your profit margins. If you question whether you have the skills or the time to make this happen, OR if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management company.

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By Tim Blackwell

Source: Property Management Insider

With the arrival of a new generation of renters, marketing strategies typically change in multifamily housing and other businesses. Millennials have made more impact in the apartment industry by transforming leasing and amenity preferences than any other generation. And Gen Z, the next wave coming into focus, isn’t just following suit.

One thing both are doing, however, is sending a stern message to Corporate America about what they expect in the future. It may be a sobering moment for many companies who think they can go about business as usual.

Millennials and Gen Z are both about positive impact in the broader world and attuned to how businesses behave ethically. No secret there. But in Deloitte’s latest Millennial Survey released in May, both are showing less loyalty and confidence in business.

Younger generations skeptical of business motivations

The seventh annual survey, which asked nearly 10,500 millennials in 36 countries and 1,850 Gen Z-ers in six countries about their views on business, revealed the younger demographics are more skeptical of companies’ motivations and whether they are committed to the greater good.

Less than half of millennials now feel businesses behave ethically compared to 65 percent a year ago and fewer believe business leaders are committed to helping improve society (47 percent vs 62 percent).

“As highlighted over the past six years, millennials—and now Gen Z—are acutely attuned to business’ wider role in society, and overwhelmingly feel that business success should be measured beyond financial performance,” the survey said. “They believe business’ priorities should be job creation, innovation, enhancing employees’ lives and careers, and making a positive impact on society and the environment.”

While they recognize that profits are necessary, millennials and Gen Z believe businesses should focus more on other things than the bottom line. Unlike previous generations of workers just glad to have a job, today’s younger workers are choosier and need positive reasons to be loyal to their employers, according to the survey.

But, while they want businesses to help them with career development and prepare for Industry 4.0 changes, neither envision hanging around too long. The survey notes that 61 percent of Gen Z expects to leave a job within two years, compared to 43 percent of Millennials. Only 12 percent of Gen Z feels like staying beyond five years, compared to 28 percent of Millennials.

For Gen Z, financial rewards/benefits and a positive workplace culture trump all other reasons to work. Also, each generation is a proponent of the Gig Economy, the segment that takes on short-term contract or freelance work in addition to full-time employment. Of millennials who are in senior management, 70 percent favor taking on such work as an alternative to working full time.

Deloitte says that “attracting millennial and Gen Z respondents begins with financial rewards and workplace culture; it is enhanced when businesses and their senior management are diverse, and when the workplace offers higher degrees of flexibility. Those less than satisfied with their pay and work flexibility are increasingly attracted to the gig economy.”

Companies that are able to balance social concerns with profitability and be more generous to employees and the community will attract and retain the cream of the crop.

Millennials, Gen Z paying attention to multifamily social practices

Certainly, that speaks volumes for the future of leasing apartments, especially now that Gen Z has arrived and is signing leases for the first time.

“Really, this generation is paying attention to everything socially that we are doing,” said Edr Vice President Kim Grisvard as a recent student housing conference. “It’s about giving back or contributing, the whole fitness, wellness thing and also about being eco-friendly.”

Citing a number of surveys and industry data, Grisvard offered multifamily and student housing an introduction to the generation.

Naturally, digital presence is a big factor with Gen Z, as many rely on connectivity and spend a chunk of their day on social media.

“Forty percent prefer to have high-speed internet over a working bathroom,” Grisvard said with a laugh.

The generation is heavy into volunteering for worthy causes and giving to charities, and strongly motivated by winning something. Donating money to earn some swag, she said, is cool.

Gen Z is all about being social and apartments that provide physical and cyber gathering spots will make an impact for leisure or worthwhile causes.

“They want to come together as a community,” she said. “This is the Etsy Generation.”

Apartments can make an impact on corporate social responsibility

Jen Piccotti, chief operator officer of ManagInc, says apartments can have an impact on overall corporate social responsibility by making sure employees and residents know what they care about and talking about it.

She noted that multifamily rose to the occasion when natural disasters impacted Texas, California and Oregon in the past couple of years yet didn’t really say much about it.

“We’ve had hurricanes, flooding, and in Northern California and Oregon we had horrible wildfires, and who came in to help?” she said. “A lot of people, and big part was our industry. We volunteered, brought supplies, yet we don’t talk about it that much. We should. People want to know. They want to see if you’re a match.”

She added that 84.2 percent of multifamily companies surveyed by ManagInc recently had company-organized community service events. Just the sort of thing that Gen Z relishes.

Tools like portals can be an invitation for younger renters

In addition to instilling strong corporate social responsibility, utilizing multifamily tools like community portals can help property managers attract younger renters to their properties.

In recent years, online resident portals have transformed where residents interact with each other and apartment staff. They build a sense of community by providing a place to socialize and connect with their neighbors, says Jennifer Torigoe, Industry Principal Consumer Solutions at RealPage.

“Gen Z renters expect to have the ability to connect with their community and their neighbors, and they expect that experience to be mobile and user-friendly,” she said. “Providing a feature-rich, immersive, mobile experience is a must for this generation.”

Things are changing with resident expectations, notes Grisvard. That happens when one generation moves on and another arrives. Make no bones about it, she says, Gen Z is here.

And now it’s up to multifamily companies and others listen to what the generation is saying. If not, they may be missing out.

By Tim Blackwell

Source: Property Management Insider

Technology is helping offset time and sky-high costs in today’s building processes, bureaucracy notwithstanding. It may not be the complete salvation of the modern-day building, but Bruns and the Weitz Co. see it easing some of the pain.

New technology, pre-manufacturing maximizing productivity

The industry is embarking on fresh techniques that require less brute strength and more technical power.

While automation and pre-manufacturing are already in the pipeline, Bruns and Weitz — one of the U.S.’s oldest construction firms specializing in commercial, industrial and heavy industrial projects — believe that construction will continue conforming to the latest advances as developers seek to build projects on time and under budget.

The company is using robots and drones to maximize productivity on job sites and help planners think through construction processes before the first load of lumber is delivered.

A few years ago in Omaha, NE, robots laid out a project and saved $100,000 in setup costs. On another project, they helped determine the precise amount of rebar (30,000 pieces) needed for concrete work on a building, and did so to near perfection. Only three of the pieces delivered to the site didn’t fit, a 0.0001 percent spoilage rate.

Better planning through technology was a big reason the 3,400-bed Park West student housing project at Texas A&M University in College Station, Texas, finished a week ahead of schedule.

“We took all the pre-development risk out of it,” Bruns said. “We funded all the schematic design — $1.8 million worth — for the opportunity to be involved in this project and get an above-market feel when all was said and done. It turned out to be a great project, a truly monumental accomplishment.”

Modular building reducing time at the job site

At a factory in Cincinnati, modular bathrooms were built and shipped to a flagship hotel project in Des Moines, Iowa. Bruns said the decision to pre-fabricate saved “17 weeks of chaos on the job site.”

Cranes hoisted finished modules, complete with tile and grout, onto the flat surface of the structure with ease. Because of their design, the bathrooms fit snugly against the surface of the rest of the apartment, with no transition from the carpet to the bathroom floor.

The modules were made of strong, lightweight composite material and metal studs so they could be shipped safely and minimize spoilage. All were installed about two weeks sooner than if crews had built them onsite.

Building the bathrooms in a factory offered some subtle assembly efficiencies that workers couldn’t gain otherwise, like applying thinner grout lines when setting tile.

“The grout joints on the tile are half the size of a normal installation,” Bruns said. “That means it doesn’t take as much work to clean it. Quality improves. The schedule was dramatically impacted.”

Overall, the company cut costs 7.5 percent.

The Weitz Co. also is leveraging technical know-how to stay on top of jobs, from planning to the final coat of paint. Drones are being used to better assess job sites before work starts and inspect structures as they are being built and after completion. The technology allows inspectors to see parts of high-rises that would normally be too dangerous for workers to access unless they used heavy equipment.

“We’re using drones to help us understand how productive we are, to see places we couldn’t see before,” Bruns said. “We’re seeing what the detail looks like way up high on new projects, those brand new student housing projects that everybody’s excited about.”

Along the way, end-of-construction punch lists are being redefined. In the past, nobody had a list that included scrutinizing a high-rise building’s façade well beyond the first few floors with as much specificity as possible today, Bruns said.

Pre-manufacturing could help ease labor issues

Bruns said building some components in advance could solve a chunk of the construction industry’s manpower issues, although some believe it’s not a perfect process. Among the reasons are that modules could be assembled incorrectly or take too long to build offsite or be damaged in shipment.

One architect at the conference said mold was found in some modules that sat outside too long at the site before being installed in one high-rise. The problem put the project behind schedule.

Others think the old-school way of assembling buildings is just faster and does not compromise control at the job site.

But Bruns said the industry may have to rely on pre-fabrication like it or not, especially if labor shortages persist.

It’s no secret that fewer workers are choosing construction as a career. Coupled with rising retirements, an already depleted labor force is just getting thinner.

“My prediction is that there’s going to be no choice,” Bruns said. “Manpower is going to continue to be scarce while the demand is going to continue to be there. The trades people are retiring at a rate that is absolutely alarming. Finding a mason right now in this country is a real challenge; in fact, we’re considering multiple masons on just about every project of scale because if somebody stumbles you have to be there to pick it up.”

Technology creating greater transparency in construction

The true impact of how technology is improving construction ultimately is in the bottom line and keeping it in check while minimizing cost overruns. Honing in on labor issues and on precise processes not impacted as much by spoilage and waste offers better transparency in pricing.

Bruns says the Weitz Co. already has greater pricing transparency and that this will become the norm with all construction companies when building commercial and residential establishments. Sort of like buying an everyday item off the grocer’s shelf.

“You know what it costs to buy, you know you like it and you know it does the job,” he said. “In the future, buying our services will be much more straightforward.”

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By Aimee Miller

Source: AppFolio

Savvy property managers use mobile technology to attract residents and build stronger relationships. It’s not just about first-time connections with prospects. Mobile tech advancements make it possible to engage prospective residents at virtually every touch point of the leasing experience – even after the move-in date comes and goes.

If you want to leverage mobile technology at maximum levels, start with the basics.

Build an infrastructure that supports diverse users – including compatibility with multiple operating systems and devices like tablets, smart phones, laptop computers and iPad technology. To get this part right, you’ll need to choose property management software and web host providers who deploy the newest technology and engage in ongoing upgrades to support all types of users and their digital machines.

Improved connectivity increases engagement and increased engagement leads to higher conversion rates.

Start the conversation with residents on the move. Texting leads about an open-house event or current rent specials while they’re in their cars or dining out is a great way to drive traffic to your property. Mobile ads, coupons and invites are popular marketing tools.

Continue the conversation with mobile leasing applications. Add online lease signing features that help you close the deal faster with almost immediate application review and approval policies.

Create memorable first impressions with video. Augmenting text content with video and audio is gaining popularity – and Google looks favorably on video added to blogs, FB posts and social media exchanges. To move up the index, consider posting vacancy snapshots and virtual property tours on your website.

With apps like Instagram’s Hyperlapse that let you create fun, informative video you’ll be able to show residents what’s great about your property. Pique curiosity or build credibility, the choice is yours. Whether you want to showcase new additions to your portfolio or document a day in the life of your community, sharable content expands your marketing reach.

Fostering relationship building by increasing workflow efficiency.Integrating mobile apps for annual inspections keeps maintenance staff organized and frees up office personnel to devote more face time to onsite property tours and other engagement activities.

Combine texting and portals. Market your property as a technology rich community. Make rent payment simple and available and you’ll most likely see a drop in late payments. Text reminders, supported by mobile access to online resident portals, encourage residents to make their rent payments promptly.

Text can also help you follow up with past applicants and wait-list clients when vacancies hit available status. Here’s why:

• Text is more popular than voice calls.
• 9 out of 10 text recipients read the message within 3 minutes.
• Almost 100% of text messages are read – only 1% are ignored or deleted unopened.

Improve customer experience with behind the scenes mobile technology.Perhaps the best strategy for attracting high caliber residents to your property is addressing what goes on behind the scenes.

Whether you’re using mobile apps that improve time management or incorporating a BYOD policy to keep your staff connected, give your team the technology tools they need to outshine the competition.

Mobile technology reduces costs, improves communication and enables increased productivity. A solid marketing plan and a well-oiled property management machine will naturally attract – and retain – more qualified residents. Have you had a good or bad experience with mobile technology on your property? Tell us about it in the comment section below.

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Source: iProperty

Finding the perfect property for you is a difficult process and even if you find it, it can still be difficult to tell. In order to ensure that you make a property purchase that you won’t later regret, follow the below tips.

View several properties

Although you might think it’s love at first sight as soon as you step foot in your first property, there’s no harm in checking out what the rest of the market has to offer. Attend a few open houses in the local area to get a real feel for the neighbourhood you could be living in.

By doing this, you’ll also be able to develop a strong grasp of the features you want your new home to have. Until you see them in a property, you might not realise how useful they’ll be.

Get professional help

Homebuyers – those making their first purchase in particular – definitely shouldn’t hesitate when it comes to asking for advice. Get in touch with local estate agents and mortgage brokers and find out what they have to say about the local area.

Ask them any questions you may have, as it’s far easier to get professional advice at the start of your home buying journey than once you’ve already begun.

Be aware that compromises may be necessary

Depending on how well the market is performing, you might need to accept that the type of property you’re after simply isn’t available in your ideal neighbourhood. Draw up a list of the key features your property needs to have and work around this. It’ll give you a much clearer picture of which properties meet your needs.

Don’t skip building and pest inspections

Once you’ve found a house you’re interested in, it’s understandable that you might want to rush through the process and move in as soon as possible. Remember, however, that skipping any building and pest inspections isn’t a good plan, as it can cost you a lot of money down the line.

Don’t buy a house for its furnishings

Although a fully-furnished house is appealing, you’ve got to look past the furniture and decor. Although it might look nice, there might be other properties without furniture that suit your needs better. Focus on the property itself and leave furniture and decor for later.

Don’t get overly emotionally attached

At the end of the day, any property purchase is a business decision. Getting overly emotionally attached to a property can cloud your judgement and lead to you spending much more than you can afford. It can also lead to disappointment if your offer isn’t accepted and the property goes to someone else.

Jumping into the real estate world is a tried-and-true pathway to wealth. That pathway, although tested, isn’t for the faint of heart — there are many bumps along the way. Before you start buying, take some useful beginner’s advice from the insiders who have been there and done that.

Check out the tips below to learn about some common real estate myths you need to know before you get into the game.

Tip 1: It’s all about the timing.

Dollar signs are directly linked to the calendar when it comes to real estate. Thanks to seasonal fluctuations, the listing date could increase sellers’ profits — or give buyers a serious discount.

Tip 2: Video made the real estate star.

The online shopping phenomenon has also touched the world of real estate — and over 80 percent of all new home buyers find their new abode online, according to Ben Salem of Ben Salem Properties in Beverly Hills, Calif. His advice? Put that GoPro to good use and give prospective buyers a walk-through of their new, soon-to-be home.

Tip 3: Be wary of home improvements.

Do your homework and learn which home improvements add value to your home, because not all of them do. Be sure to focus on projects that will maximize the return on your investment — think a fresh coat of paint or a new garage door versus a massive undertaking, pricing you out of your real estate market.

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By Kami Zargari

Source: Forbes

It’s true, whether we’re talking about the technology industry, the medical industry or the real estate industry, what Steve Jobs is believed to have once said: “If you really look closely, most overnight successes took a long time.”

Achieving success in property management often takes time — years of experience tempered by discipline, attention to detail and an unwavering commitment to withstanding responsibility and pressure.

Knowing how to juggle the manifold duties of property management is one of the great secrets to success. Understanding the value of communication and how best to liaise with both colleagues and clients is another skill that every property manager must master. And staying enthusiastic and knowing how to stimulate interest in your clients are absolute musts for sealing the deal.

Knowing the secrets to success of the best property managers is not enough; you need to actually possess these skills.

Building The Right Skillset

Constructing any skill set is not enough. The skills you refine and sharpen must be tailored to the profession.

As a property manager, you are exposed to a daily onslaught of real estate tasks. You need to deal with colleagues, tenants, owners, maintenance personnel, prospective clients — the list goes on.

Source: Propertyware

When you are a property manager, filling vacancies and looking after properties are not the only things on your to-do list. You have to make sure your tenants are happy, the contractors are doing their job, and your actual clients – the property owners – are making money from their investment. To cut a long story short, life in property management is never dull…or easy. While a few property managers drop out after some years, unable to meet the long hours, never-ending stress, and hectic demands of the job, others manage to have it all. Ever wondered why? It’s because they have mastered these 8 secrets of being a successful property manager. Take a look!

1. A successful property manager knows that attitude is key

One thing common to all great property managers is a great attitude. When you are managing a large number of properties, there are always times when things don’t work out as planned. But a great property manager never gives up or lets such things bring him down. He treats every problem that comes his way as a new opportunity to make things right. He doesn’t have a rigid, pessimistic attitude that prevents him from approaching a problem from a different angle or experimenting with an out-of-the box solution.

Still not convinced? Studies have proven that happier people who face life with a positive attitude achieve greater success at work and in life

2. A successful property manager is a great ‘people person’

To be a successful property manager, you first have to be a great ‘people person’.

When you are in a profession that involves interacting with so many people on a daily basis, you have to be able to relate to them,communicate with them, understand them, respond to their issues with sensitivity, and build relationships based on trust and mutual respect. As the go-between between many different parties with varying, and sometimes conflicting,needs and interests, you need to know how to balance those interests so that everyone is happy.

3. A successful property manager knows that technology is his friend

A good property manager can become a great one by learning how to use technology to his advantage. Granted it can be difficult to stop doing things the way you have always have, but what if technology offers you a less time-consuming and more efficient way to do it?

Harnessing the huge power of technology can free you from the tedium of routine tasks, giving you more time to spend on things that really matter. All your leases, reports, work orders, and owner and client communications can be stored in one single platform which you can access any time as long as you have an internet connection.

4. A successful property manager keeps an eye on the competition

A successful property manager always keeps a discreet eye on the competition to compare rental rates and to find out where he can improve. He knows that researching his competition can give him new ideas for growing and improving his business. For example, you can set yourself apart from other rental properties in your area by introducing new, exciting schemes for your tenants that are not available elsewhere.

5. A successful property manager avoids falling into the complacency trap

Property management is a field that is evolving every day. If you want to be more successful as a property manager, it is important that you keep yourself abreast of the latest trends and regulations, especially in big cities where property laws change frequently. This will also help you keep the owners or the board informed of all goings-on, so that they are not taken by surprise at the last minute.

You should also make sure that you keep learning or take professional refresher courses to avoid getting outdated. Joining industry associations and attending local property management conferences can help you stay informed and valuable as a property manager.

A good manager who avoids the trap of complacency will also be able to anticipate problems even before they arise and take steps to prevent them, making the lives of the owners and the tenants more comfortable.

6. A successful property manager is always professional and organized

A good property manager knows that is always important to be professional in his dealings with people, be it tenants, owners, staff, or other professionals. He never behaves rudely or lets his personal biases interfere with his judgment or influence his decisions.

At the same time, while he is always friendly with the tenants, he knows there is a very thin line between being friendly and being a friend. Crossing that line and developing a personal relationship with a tenant can very well impact a property manager’s ability to work efficiently.

And don’t forget, your organizational and planning skills are also very important if you want to move up the career ladder in property management. If you have set out clear, well-defined processes, especially for routine tasks like screening of new clients or rent collection, it can minimize confusion and help you and your staff save time and work more effectively.

7. A successful property manager has a great team

If you want to succeed as a manager, you need to have a great team working under you. Since most of your employees will have to interact with owners or tenants on a regular basis, you have to make sure that you hire people who are not only efficient at their jobs, but also share your professional values and work attitude.

8. A successful property manager knows the importance of networking

A successful property manager has a great network of other real estate professionals and contractors whom he can rely on. Maintaining good professional relationships with such people can help you grow your management company, and also learn so many things, including new ideas, best practices and marketing. Social networks, such as LinkedIn, can be a good place to start building connections.

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By Alyssa Gregory

Source: The Balances

There are more than 28 million small businesses in the United States, making up a whopping 99.7 percent of all U.S. businesses, according to the Small Business Administration. When you consider some of the most popular reasons to start a business, including having a unique business idea, designing a career that has the flexibility to grow with you, working toward financial independence, and investing in yourself — it’s no wonder that small businesses are everywhere.

But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So you may be in for a real challenge when you decide to take the plunge, ditch your day job, and become a business owner. The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your business can set the foundation for success.

Here are 10 steps that are required to start a business successfully. Take one step at a time, and you’ll be on your way to successful small business ownership.

Step 1: Do Your Research

Most likely you have already identified a business idea, so now it’s time to balance it with a little reality. Does your idea have the potential to succeed? You will need to run your business idea through a validation process before you go any further.

In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants.

There are a number of ways you can identify this need, including research, focus groups, and even trial and error. As you explore the market, some of the questions you should answer include:

• Is there a need for your anticipated products/services?
• Who needs it?
• Are there other companies offering similar products/services now?
• What is the competition like?
• How will your business fit into the market?

Don’t forget to ask yourself some questions, too, about starting a business before you take the plunge.

Step 2: Make a Plan

You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.

The good news is that there are different types of business plans for different types of businesses.

If you intend to seek financial support from an investor or financial institution, a traditional business plan is a must. This type of business plan is generally long and thorough and has a common set of sections that investors and banks look for when they are validating your idea.

If you don’t anticipate seeking financial support, a simple one-page business plan can give you clarity about what you hope to achieve and how you plan to do it. In fact, you can even create a working business plan on the back of a napkin, and improve it over time. Some kind of plan in writing is always better than nothing.

Step 3: Plan Your Finances

Starting a small business doesn’t have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.).

Those numbers combined is the initial investment you will need.

Now that you have a rough number in mind, there are a number of ways you can fund your small business, including:

• Financing
• Small business loans
• Small business grants
• Angel investors
• Crowdfunding

You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business. You may find that a combination of the paths listed above work best. The goal here, though, is to work through the options and create a plan for setting up the capital you need to get your business off the ground.

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Source: Entrepreneur

Before you start shopping for business space, you need to have a clear picture of what you must have, what you’d like to have, what you absolutely won’t tolerate and how much you’re able to pay. Developing that picture can be a time-consuming process that’s both exciting and tedious, but it’s essential you give it the attention it deserves. While many startup mistakes can be corrected later on, a poor choice of location is sometimes impossible to repair.

Be systematic and realistic as you consider the following 10 location points.

Style of Operation

Is your operation going to be formal and elegant? Or kicked-back and casual? Your location should be consistent with your particular style and image. If your business is retailing, do you want a traditional store, or would you like to try operating from a kiosk (or booth) in a mall or a cart that you can move to various locations?

Demographics

There are two important angles to the issue of demographics. First, consider who your customers are and how important their proximity to your location is. For a retailer and some service providers, this is critical; for other types of businesses, it might not be as important. The demographic profile you have of your target market will help you make this decision.

Then take a look at the community. If your customer base is local, does a sufficient percentage of that population match your customer profile to support your business? Does the community have a stable economic base that will provide a healthy environment for your business? Be cautious when considering communities that are largely dependent on a particular industry for their economy; a downturn could be bad for business.

Now think about your work force. What skills do you need, and are people with those talents available? Does the community have the resources to serve their needs? Is there sufficient housing in the appropriate price range? Will your employees find the schools, recreational opportunities, culture, and other aspects of the community satisfactory?

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By Jonathon Bailey

Source: Bankless Times

If you have decided that the time has come for your business to move to a new office space, there is a lot that needs to be considered.

You need to ensure that the new offices you choose are right for you, your business, and your members of staff. But, how can you make sure that this is the case? Read on to find out some of the most important factors you will need to consider.

Client reach

One of the most important factors to consider when looking for a new office space is how accessible you will be for your clients. This is especially the case for those working in a consumer-facing industry. You should do your research to find out more about where the vast majority of your customers are based, as well as areas whereby you have the greatest potential to acquire more clients. This will help you to pick the perfect spot for you.

Convenience

You also need to consider the convenience of the location for your employees. If your new office is in a place that is going to be difficult for them to get to, you may find that a number of your employees will hand in their notice, so you do need to be prepared for this. Remember that not everyone drives, so checking out the public transport routes is a must. It is also important to give your employees as much notice as possible about the move so that they can prepare for it.

Professional assistance

It is also a good idea to talk to an agent to get their professional opinion. A good example includes the Buyer’s Agent of East Florida. A specialist like this will know everything there is to know about the area. They will be able to tell you information regarding commercial properties in the area, how much they go for, and so on.

Price

Needless to say, the price is a pivotal factor when making any type of business purchase. Rather than looking for the cheapest office space you can find, take the time to draw up a thorough budget so you can determine what you can comfortably afford. After all, if you go for a cheap office, this could reflect negatively on your brand. Plus, you need to question whether the office space is really that cheap to rent. A lot of the lower priced adverts indicate that there are some hidden expenses. This is why it is critical to read each and every term and condition so you know exactly what you are letting yourself in for.

If you carefully consider all of the points that have been mentioned above, you will give yourself the best chance of choosing the perfect office space for your business.

From the location to the potential for future growth, there is a lot to consider, but it is a necessity if you want your company to flourish in its new office space.

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Source: Forbes

Buying or selling a home is an exciting experience for anyone. There is the thrill of the hunt and the excitement of the deal. The whole process is enhanced by a good real estate agent who knows the ins and outs of the market. But with so many brokerages and agents out there to choose from, finding a perfect fit may be more of a challenge than you expected. Working with a top agent who is experienced and trustworthy can go a long way in ensuring your property sells at top dollar, or that you buy for the best price in the market.

To help with the selection process, 14 members of Forbes Real Estate Council weigh in on how prospective buyers or sellers can make sure the real estate agent they’re working with is the right one for them. Here is what they had to say:

1. Choose The Person, Not The Experience

I am a firm believer in choosing an agent who works for you and with you. Don’t choose an agent based solely on experience. Although it’s good to have, it’s not everything. You will be spending a lot of time with that agent and you need to mesh. Choose someone relatable and real. Choose for you, not for the house. Choose someone good at talking and negotiating. – Kevin Taylor, Sand to City Real Estate Team

2. Remember Chemistry Is Key

It’s best to interview at least three agents before picking the one you work with. Focus on neighborhood expertise; look for hyperlocal. Ask yourself, “Is their marketing about them or their properties?” Also, can you trust them, are they honest? Chemistry is the key. – Kevin Hawkins, WAV Group, Inc.

3. Seek Referrals From Other Homeowners

Despite the technology that seems to take over much of the searching for a home, the right real estate agent is still a human-to-human choice. Referral is best. There’s no bigger compliment to an agent than a referral from a past client. Ask homeowners who they would recommend. If you know the area you want to purchase in or sell your home in, there will be an expert in that area. – Eileen Lacerte, Hawaii Beach and Golf Properties

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By Jordan Muela

Source: Manage My Property

While every investors situation is different, there are certain scenarios and factors that typically pre-dispose owners one way or the other. The following questions are designed to help you determine if you should consider hiring a property manager.

1. How far do you live from your rental property and how frequently can you visit the property on a regular basis?

If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there is to not keep a close eye on things, and that can be a recipe for disaster. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, is this feasible for you?

2. How do you deal with stress? Do you consider yourself to be a tolerant person?

This is a tough one. We all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants:

• Get in fights with other tenants or neighbors
• Have domestic disputes
• Conduct illegal business in the dwelling
• Carry on all night parties and revelry
• Try to sneak extra people or animals into the home
• Decide to sue you
• Trash the property
• Incite the wrath of the HOA because of repeated deed restriction violations
• Refuse to pay rent because they are a “professional tenant” and know how to work the legal system for the maximum amount of free housing at the owners expense?

3. Are you currently overwhelmed with your property(s)?

Managing rental properties can become quickly overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand. Hiring a property manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

4. How many rental properties or units do you have?

As your portfolio grows so do the management challenges, and it becomes easier for things to fall through the cracks. Investors with large portfolios stand to reap significant benefit by leveraging the efficiencies a property manager can provide. Size can also constrain investors’ ability to consider purchasing new properties if they’re already maxed out managing their current holdings.

5. How much experience do you have with maintenance and repairs?

If you can’t do it yourself, do you know who to call? Finding reliable handymen and contractors can take a while and in the mean time you may unknowingly hire people that are unethical, uninsured, do poor quality work, over charge etc. Maintenance and repairs are a significant component of land lording and if you question your ability to ensure the work is done well and in a timely manner, you might want to consider hiring a property management company.

6. How quickly are you able to get your unit rented?

Advertising, fielding calls, and showing the unit can take a considerable amount of time, but are critical tasks as vacancies will quickly eat into your profit margins. If you question whether you have the skills or the time to make this happen, OR if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management company.

7. Are you capable of handling the accounting and record keeping for your property?

From profit and loss statements to tax deductions, this area needs special attention and becomes an increasingly larger burden for larger portfolios. Some owners (especially those with a back ground in finance) will do just fine, others may opt to hire an accountant to help with the book keeping. If you feel like this might be a weak point you might want to consider hiring a property management company.

8. Are you willing to be on call 24/7/365?

Its important to answer this question honestly, because when an emergency happens at your property you can’t ignore it. Your special event, important meeting, vacation, or personal crisis doesn’t relieve you of your obligation to your tenant. These emergencies don’t happen all the time, but when they do you have to be willing to handle them immediately. Can you handle being called at 2 in the morning to fix someone’s overflowing toilet?

9. Are you willing to confront tenants about late payments and if need be evict them from the property?

Many new owners dislike feeling like the bad guy and try to be understanding by making exceptions. The problem is that this only invites additional abuses and excuses by tenants. Late payments must be dealt with immediately, and while sometimes a friendly reminder is all that’s needed, other times, it can be a very confrontational process ending in eviction. Unlike running a charity, running a successful rental business means enforcing the rules even it means evicting a single mother who lost her job and won’t be able to pay rent anytime soon.

10. How well do you understand the laws governing land lording?

Ensuring the property is run in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important as your rental agreement is the only binding agreement between you and the tenant.

11. From a financial standpoint, is managing your property the best use of your time?

Ultimately, your decision to hire or not hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially.  Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

Next, lets cover what exactly a management company can do for you and your property(s).

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By Betsy Morris and Eliot Brown

Source: WSJ

By Tim Blackwell

Source: Property Management Insider

With property operations, every day the sun sets and rises with the risk of incurring vacancy losses, bad debt, collection and concession losses, and more.

“Do you have a risk management strategy?” It’s one of the top questions asked of property management companies, and many organizations mistake risk mitigation for risk management.

If your company is only engaging in risk mitigation, or the proactive reduction of risk you’re willing to take on, you’re missing out on two-thirds of a comprehensive risk management strategy. Here’s why:

• There’s a risk of a kitchen fire or accident at the property, a result of a careless resident. You can’t calculate that risk and mitigate an accident or even the behavior of your renters.
• There’s a risk that a new renter isn’t even the person that’s referenced on the credit application. You can’t calculate risk and mitigate what you don’t know about a prospective renter.
• There’s a risk that a renter will skip out on the last few months of their lease, leaving you with bad debt. You can mitigate this risk, but at what cost to your occupancy?

The inherent risk that comes with property management is real, and even unlucky at times. We all know the unfortunate stories of accidents, theft, fraud, and more.  A colleague told the story of a resident golfer’s unfortunate timing while working on his swing one summer morning near the parking lot. While using plastic practice balls to reduce the risk of breaking a window, the resident was about to make contact when the sprinklers came on. Instead of striking the ball, the club hit squarely on a sprinkler head, sending a geyser in the air and dousing the interior of a convertible.

Because a renter’s insurance policy wasn’t in place, the renter was on the hook for a few hundred dollars of damage to the sprinkler system and cleanup of the car.

Other stories – and they are out there – spin more complex tales of big fires started by residents and fraudulent identities that cost apartment managers thousands of dollars in bad debt. Catastrophes like these can put properties in compromising situations if a risk management strategy isn’t in place.

Risk management sometimes gets confused with mitigating risk, which is reducing the impact of an event or cause that can’t be avoided or covered by another party. Risk mitigation really is one component of the greater risk management approach, which provides solutions for not only mitigation, but avoidance and transference of risk as well.

It’s a three-pronged platform designed to protect property operators and owners against economic loss that erodes gross revenue and net operating income (NOI) resulting from property damage, fraud and collection and vacancy losses resulting from traditional security deposit procedures.

In simpler terms, a good risk management strategy means you avoid as much risk as possible, transfer what risk you can to renters, and protects the property against the remaining inherent risk.

First: risk avoidance

The best way to protect yourself against risk is to not let it in in the first place! The primary way to avoid risk is by employing robust screening, complete with fraud prevention. Identity fraud is growing, especially with greater online leasing adoption.

Now more than ever, property management companies are vulnerable as applicants attempt to deceive your team throughout the leasing process. Falsifying documents is becoming more common place, as are synthetic identities.

Avoid taking on risky renters with a platform designed to stop identity fraud. Traditional screening tools – credit and criminal reporting – aren’t good enough any longer. Advanced technology that incorporates identity verification and fraud prevention is essential. Look for platforms that can also prevent fraud, even for existing residents, with a direct integration into the property management system.

And finally, the best way to avoid renter risk is to know past rental history. Simply knowing whether a renter, despite a credit or criminal score, has paid their rent to previous properties can help you avoid the risks of bad renters and ensure good renters are welcomed.

Second: risk transfer

Transferring the risk of residents who cause damage to their units is something that many property management companies are practicing as normal course of business. The onus is transferred to residents via mandatory renter’s insurance programs to cover renter property damage, whether accidental or intentional.

Renter’s insurance isn’t new – but ensuring compliance with mandatory programs can cause headaches for your property team. You shouldn’t have to spend valuable time tracking down non-compliant renters, and you shouldn’t need to scramble to temporarily cover non-compliant or vacant units from risk.

Effective risk transference tools handle non-compliance seamlessly and automatically, communicating directly to non-compliant renters, informing the property of program violations, and issuing temporary gap coverage for the unit, all without direct intervention from the site team.

Given the rising costs of building and maintaining properties, who can afford to risk an asset because of something that generally is out of the property management company’s control?

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